The biggest-ever U.S. corn harvest is spurring poultry farms to expand chicken production, sending domestic supplies of the meat to a record and cutting costs for buyers from Costco Wholesale Corp. (COST) to McDonald’s Corp. (MCD)
Corn fell 50 percent from its peak during last year’s U.S. drought, boosting profit for Tyson Foods Inc. (TSN) and other poultry producers and expanding supplies of broiler meat the government says will reach a record this year and next. Wholesale prices will drop 7.1 percent to 92 cents a pound in 2014, according to the median of seven analyst estimates compiled by Bloomberg.
Chicken companies increased egg production in six of the first seven months this year, government data show. Processors are earning 5 cents a pound compared with losses of 4 cents to 5 cents a year earlier, the National Chicken Council said. More birds mean lower costs for Costco and McDonald’s, and expanding supply may help extend the drop in global food costs that the United Nations says reached a three-year low in September.
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