Why are chickens getting more pricey around the world?
Chicken is the most consumed meat in the world, but from the US to Singapore, people found chickens getting more and more expensive. Your favorite food fried chicken and chicken rice could get more pricey accordingly.
But why are they getting more expensive?![]()
![]()
![]()
Russo-Ukrainian War
The war in Ukraine has disrupted its poultry exports to countries in Europe and the Middle East. More importantly, Ukraine is a major producer of corn and wheat, which are components of chicken feed.
Since the supply chain is cut off, farmers in many countries are facing increased costs for raising chickens. Rising energy and transport costs are further compounding the problem.
Bird Flu
Bird flu also has a great impact on global chicken output. In the US, more than 38 million chickens and turkeys are killed since the start of February due to an outbreak. The UK experienced its largest-ever outbreak of bird flu last October.![]()
![]()
![]()
Politics
You may all know that Malaysia plans to ban the chicken export of 3.6 million chickens a month from June 1, in order to secure local food supply and maintain food price.
About 34% of Singapore's chicken imports were from Malaysia last year, thus Malaysia's move could lead to serious disruptions to Singapore's food market.
Are there more reasons driving chicken prices higher? What stocks could benefit from the price hike?
Comment below to discuss with other mooers!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
PaAg1378 : I cant quite get the logic.. How will tyson etc benefit when their costs r gg skyrocket and margin will b thin..
Lion cityerOP PaAg1378: I guess as a huge international companies, it could have higher bargaining power with suppliers and consumers, meaning that they are less affected by the rising costs. When others are raising prices, maybe Tyson doesn't have to, making it more competitive among peers——more sales?
PaAg1378 Lion cityerOP: Thats true.. I guess pain will b felt when critical shortages happen worldwide be it from man made or natural disasters, thanks!
SMTFM Lion cityerOP: one chicken's cost was 5, price was 10; now cost to 6, price goign to be 12, profit/earning from 5 to 6, same average PE, say 10X, price of stock is going up 20%... same to all agriculture stock, staples, grains, $VEGI $MOO $XLP. if they can pass on the cost to consumer
Bull Run : The chicken out!
101765048angelchow : how is it?
wendytan : p