If you prefer non-vegetarian food, you might have noticed that chicken is getting more expensive than usual. If so, you should know there are many reasons for it. One of the reasons is the supply chain disruption caused by the pandemic. Read on to know more about why chicken is getting so expensive.
The Rise
According to the
USDA Livestock, Dairy, and Poultry Outlook for May 2022, poultry production has
increased following the supply chain disruptions during the pandemic. Even the
prices have increased. An increase in production costs, especially fuel and
feed, have led to an increase in grocery store prices for consumers.
Alan Nieder, who
runs Heartland Hatchery near Amsterdam, stated that he would need to increase
the process of pullets and chicks soon if the trend continues. He said, "My
expenses are through the roof. We haven't raised our prices this year, but we
will next year if grain prices stay as high as it is."
The Strain
Another problem
highlighted by Nieder the industry faced in the spring was an outbreak of avian
flu. The USDA has shared that the national egg supplies had been impacted by a
strain that caused millions of birds' deaths. Talking about that, Nieder said, "I'm
hoping it's past us. There's been a lot of laying chickens destroyed. The
stores aren't full of eggs like they used to be."
Feed Issues
One more reason
for the rising chicken costs is the rise in feed costs. The feed usually means
wheat or soya or even sunflower oil spin-off. The feed prices have been rising
as a result of stopped working harvests last summertime and the ongoing war
between Russia and Ukraine. Here’s more on chicken
feed.
Kynan Massey, the
handling supervisor of Massey Bros feed company, stated, "Russia and
Ukraine are in charge of a quarter of wheat exported around the world. If the dispute
continues, we could see costs carrying on climbing, as well as in Europe the
completely dry weather condition is affecting expenses as well."
Transportation
Costs and Other Issues
The transfer
of birds is usually done in crates, and these crates are transferred by a
vehicle. The rising fuel costs mean that transportation also costs more than
usual. Finding the right driver for the job is also a challenge. The wages of
drivers and far workers have also increased due to a shortage of skilled
people. Higher compensation is offered to lure and retain the workers like
drivers or farmworkers.
Chicken farmer
James Mottershead said, "The reality is that when you have a shortage,
people can name their rates."
Another concern
worth noting is that most chickens are eliminated using gas like carbon dioxide,
but the gas prices are also rising.
The costs of
fertilizers are also increasing. As Russia is a key manufacturer of key
components required for fertilizer, and the situation is uncertain there, the
costs are up.
The cost of
packaging is also rising. It contributes to rising chicken prices as well.
As you can see,
many factors are driving the prices of chickens, and due to that, you can't
expect the prices to lower anytime soon.
Sources:
https://www.ky3.com/2022/05/19/poultry-producer-explains-why-chicken-is-getting-more-expensive/
https://travellifo.com/news/why-chicken-is-getting-more-and-more-expensive/
https://www.bbc.com/news/business-61466479