The low cost of chicken is good for consumers, but bad for Georgia's agricultural economy. The state's $13 billion poultry industry is scaling back production to boost prices again, experts say.
Sanderson Farms, the fourth-largest poultry producer in the U.S., reported a $56 million third-quarter loss last week that it attributed to low restaurant demand for chicken and low prices.
The U.S. Department of Agriculture announced a chicken stimulus plan of sorts Aug. 18. It is buying $40 million worth of fowl for school lunch and other government programs in an effort to prop up the poultry industry, in addition to the $100 million it usually spends on hens annually.
Trade issues with China and efforts to raise more chickens in Russia mean the overseas market for U.S. exports has shrunk, said Mike Lacy, the head of the University of Georgia's poultry science department. People in developing countries are eating less protein as well, he said.
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