Good News for Consumers: Record Corn Crop Means Cheaper Chicken Prices
FBN’s Jeff Flock reports on the decreasing price of chicken feed that may result in savings for the consumer.
It could be a record year for corn and soybeans according to crop surveys by the USDA and private analysts, which means cheaper feed for chickens and cheaper chicken for consumers but bad news for farmers.
Low feed costs have saved the nation’s number three poultry producer, Sanderson Farms (NASDAQ:SAFM), tens of thousands of dollars in the last quarter and boosted their stock price by 38% in the last year.
Similarly, Tyson (NYSE:TSN), the nation’s largest producer has seen a 77% surge in shares.
While meat processors and consumers reap the benefits of these low prices, farmers could lose money if the record crop costs more to produce.
The FOX Business Network’s Jeff Flock visited the Slagel Family Farm in Fairbury, Illinois, and a flock of 600 chickens, to find out how the bountiful harvest and low prices impact the fifth generation farmers.
“Whenever we feed our own product I guess it helps us out regardless of pricing, we have a lot more set fee costs and we have set inputs and it helps us out in the long run,” said Slagel Family Farm Owner LouisJohn Slagel.