Riverside

Chicken supply tight but producers say ‘shortage’ is a ‘stretch’ – Riverside, California

Riverside, California 2021-05-06 10:15:19 –

The chicken market remained tight due to increased demand and reduced supply earlier this year, but supply is now increasing.

People all over America There was a dramatic reaction After this week Some media outlets Reported a shortage of fried chicken.

According to those stories, the growing popularity of fried chicken has increased the demand for chicken, especially in the form of fast food sandwiches. On the other hand, producers are facing a labor shortage in their processing plants, which does not seem to provide enough supply to keep up with demand.

Question

Is there really a shortage of fried chicken?

Source of information

answer

Yes, chicken production began in 2021, but it is an exaggeration for chicken producers to call it a “deficiency” and as evidence that supply can eventually catch up with demand in the past. It points out that production has increased in the coming weeks.

What we found

Call for quarterly revenue from Yum Brands, Kentucky Fried Chicken Owners, and Wing stop When the CEO claimed he was having trouble keeping up with demand, he first issued a warning.

“When we entered the second quarter, the demand for new sandwiches was very strong, and our main challenge, coupled with the overall tightening of domestic chicken supply, was to keep up with that demand,” said KFC’s Yum Brands. CEO David Gibbs said.

“Suppliers, like many in our industry, struggle to hire people to process chicken, which puts unexpected pressure on the amount of birds that can be processed, with wings alone. Not having a negative impact on the supply of all parts of US chicken, “Wingstop’s Charles Morrison said in terms of price.

Those comments Social media replies by BojanglesA fast food chain that specializes in chicken and biscuits, primarily in the southeast, said the chain is facing a system-wide shortage in one of its menu items.

Comments from the CEO of Wingstop April 2021 Livestock, dairy and poultry outlook From the USDA. “Continuous rises in wing prices can generally be due to tight supply (due to labor problems) and strong domestic demand for wings,” the report said. “Wholesale b / s udder prices in the first quarter, especially after the decline in boneless / skinless (b / s) udder prices over the past few years, especially as a result of the ongoing chicken sandwich war. Has risen significantly .. “

The graph on page 16 of the report shows that chicken production in February fell dramatically compared to 2019 and 2020. The report cites an unprecedented winter storm in the south of February as the main cause. The chicken producer agrees.

“Chicken growers are doing everything they can to overcome the devastating effects of Mother Nature when it brings a once-in-a-lifetime winter storm to Texas and its surrounding states, the major chicken-growing regions. “We are doing,” said Tom Super, senior vice president of the National Chicken Council. Chicken Council. “It will take time and effort to finally replace the affected hatchery supply population in the area, but the supply should soon catch up with demand.”

Supermarkets also referred to the number of increasing demands. The winter storm passed Texas in February, shortly after the Super Bowl. He said the Super Bowl is the biggest event of the year for chicken wings. He proves that Tsubasa is “proof of a pandemic” because of its relevance to restaurant takeaways and its role as a comfort food in an era when people were paying close attention to such foods. Said it was done. In addition, what he called the “Air Flyer Revolution” has arrived. And finally, fast food restaurants are also contributing to demand.

“The’Chicken Sandwich War’has definitely led to an increase in demand for breast meat,” said Super. “And as restaurants reopened as restrictions began to be lifted, chicken processors needed to adjust their product lines and supply chains to return to a more’normal’retail-restaurant combination. “

Isaac Olvera, chief food and agriculture economist at ArrowStream, a supply chain technology company in the food service industry, said another aspect that contributes to this issue is backfilling existing inventories as restaurants reopen and attract more customers. I explained that it is necessary.

“Production is down year-on-year, and refrigerated inventories are down,” he said. Refrigeration refers to the food inventory of a restaurant. This is common in refrigerators and freezers. Olvera explained that restaurants often store a certain amount of food inventories in refrigerated warehouses and replenish extras that may need to be purchased by local delivery from spot markets.

“It’s certain that restaurant purchases have revived and excess inventories continue to be removed from the market, as most food service pipelines have been wiped out of rotation inventory due to the industry’s closure last year,” Olvera said. Said.

“Currently, supply chain backfills are forced to make larger purchases in the spot market, in addition to direct purchases for current needs,” he said. “Many restaurant chains are trying to do both backfilling and spot buying, so the market supply of chicken is tight.”

Still, both Super and Olvera opposed the story of us running out of chicken.

“It’s a little hard to call it a’chicken shortage’,” Super said.

“Is there a shortage of chicken … it depends on how you define the shortage. Will you run out of chicken? No,” Olvera said. “Is supply tight and prices rising due to increased purchasing motivation at the wholesale level? Yes.”

Super admitted that the latest USDA report showed a decline in chicken production in the first quarter of 2021, but supply recovered in the next report, scheduled for release on May 18. He pointed out the numbers he believed to show that he was.

“According to the same data, broilers produced in the week up to April 10 increased by 4% compared to a year ago. Weeks ending on April 17 increased by 9%. April 24 Week to day is up 7%, week to May 1 is up 2%. ” “Yes, the supply is a bit tight, but the sky is certainly not falling.”

Olvera added chicken production individually, which is mentioned in his own email. “Chicken production has returned to record levels,” he said, although not as much as once expected, thanks to the COVID-19 decline over the past year.

Anyway, the country never runs out of chicken. Supermarkets believe that the tightness of the fried chicken market will ease in the coming months.

You might be curious to go to a local fast food restaurant and eat your favorite chicken sandwiches or chicken tender meals, but don’t worry. The restaurant needs to bring all the popular chicken dishes back in stock.

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