May 4, 2020

US-based Pilgrim's Pride says fast food chicken demand close to pre-COVID-19 levels

Poultry company Pilgrim's Pride Corp, owned by JBS SA said demand for chicken among quick service restaurants (QSR) in the United States have bounced back to pre-pandemic levels, reported Reuters.

Since COVID-19 related measures were introduced in the US, demand for meat has shifted from restaurants to retail. However, as demand at QSR chains have recovered, this could mean that consumers have resumed normal activities.

Jayson Penn, Pilgrim's Pride chief executive said the QSR business is strengthening.

State lockdowns have led restaurants to shut down completely or switch takeaways and deliveries.

Pilgrim's Pride shifted workers towards producing meat for retail instead of restaurants and foodservice, in addition to putting a hold on a plan to converting a big-sized chicken deboning facility to a smaller production until the first quarter of 2021.

Penn said beef and pork plant closures could shift demand towards chicken. Major meat processors have shut down facilities as workers become infected with COVID-19, but poultry plants have remained open.

The US Department of Agriculture (USDA) said the 150 million chickens were processed in the US in the week ending April 18, 2020. This is lowest tally for April since 2014 and a big reduction from its high 169 million chickens processed before the COVID-19 pandemic in Q1 2020. The USDA said supplies are higher than demand.

-      Reuters