August 4, 2010

US chicken sales gain as beef herd declines

A decline in the US beef herd could be good news for the chicken industry, according to economist Chris Hurt of Purdue University in Indiana.

The USDA estimates that the US beef cow herd has declined 2% since last summer, to 31.7 million heads.

With lower supplies and higher retail prices, per capita beef consumption will lag and other animal species, especially chicken, will gain a larger market share in coming years, Hurt said.

Recently, Russia began accepting poultry from US again after the two countries reached a deal in June in which US chicken going to Russia will not be treated with chlorine.

Once the top export market for US chicken taking about US$800 million worth annually, Russia banned the meat early this year claiming the chlorine treatment violated its food safety rules. Chlorine was used as a disinfectant but now US companies shipping to Russia will use other treatments.

To date, the approved plants include those of the nation's top producers such as Tyson Foods Inc, Pilgrim's Pride Corp, Perdue Farms, Sanderson Farms Inc, Mountaire Farms and Koch Foods.