May 29, 2020
US beef, chicken inventories in cold storage facilities soar in April
Beef inventories were 13.9% higher year-on-year in April and 6% above the five-year average, while chicken inventories were 6.1% higher than in April 2019 and 13.5% higher than the five-year average.
According to the report, the reasons for the surge in the inventories were restaurant closures amid the spread of COVID-19 and the inability of processing facilities to slow production despite weakened demand at the restaurant wholesale level.
Inventories of chicken breast and breast meat alone rose 33% year-on-year and 37.3% higher than the five-year average.
Pork inventories in April, meanwhile, declined 1.1% year-on-year to nearly 615 million pounds. They were 0.3% lower than the previous month.
The reason for the decline as per the Gro Intelligence report was "heightened exports in 2019 and early 2020". April pork stocks were 3.5% below the five-year average.