Savoring the last Buffalo wing... because chicken prices have flown the coop. The latest poultry headline: private-equity firm Atlas is taking over Foster Farms, America's 10th largest chicken producer with $3B in annual sales (you've probably seen its ground meat at grocery stores). Atlas will install the ex-CEO of nugget giant Tyson to lead Foster. The deal comes as US chicken prices have surged, up a #flated 16% in April from a year before.
No one's a winner... with this chicken dinner. Chicken is the world's most popular meat by far, followed by pork and beef. But a series of events have combined to send chicken prices soaring — and worker shortages are just the tip of the iceberg.
Some markets are less price sensitive... when it comes to nutritional staples. In the US and other wealthy countries, where food represents ~1/10th of household spending, chicken demand has held steady from consumers and restaurants (think: fried-chicken-sandwich frenzy) — that’s a positive for the poultry industry. But in developing countries, where food typically accounts for a third of budgets, people are starting to have to cut out meat altogether, and some are at risk of undernourishment if they can’t swap for more affordable proteins.