What's driving the rising costs of chicken? (2024)

The latest numbers from the Consumer Price Index show prices for things we use every day have gone up as much as 50%.You're also paying more for food, like beef, pork, fish and chicken.Some California poultry farmers set up at the Sacramento farmer's market on Sunday are trying to keep their products affordable for customers, but they're facing rising feed prices and labor shortages. "Since COVID the prices for our feed and labor have skyrocketed, have gone up significantly," said Dan Jones with Islote Farms."With inflation, the biggest thing we have across the board is our feed," said Jeremy Fish with Honest Fish Farm. Jones and Fish said the rising costs of feeding their chickens are starving their budgets."It's the only thing as far as overhead costs, they keep going up, up and up and up. It's tripled the last two years," Fish said.While these independent farmers use organic, non-traditional sources for feed, larger facilities depend on corn shipped from the Midwest"Corn is what really drives the price," said Bill Mattos, president of the California Poultry Federation.Mattos said 60% of the cost of producing chicken is in the corn feed. He said shortages and shipping issues are also factors of rising costs."We're up 10%, some cuts maybe more," Mattos said.Contributing to the problem, less feed is getting to the chicken farmers because the Midwest growers are using corn to make an ethanol blend found at the gas pump."We keep pushing for corn to be used for animals and people and not for gasoline, but a lot of Midwest people are trying to make their ends meet too," Mattos said.Fish said raising chickens with inflation means raising prices for the consumer, but he's trying to get innovative."As we can get our feed costs down, we are trying to network with other farmers to coop and buy large bulk feed to keep the cost down to our consumer," Fish said. Jones, who sells eggs, said he's found a different solution."We're not raising our prices just because I don't want to contribute to the inflation issues. I'd rather keep our prices the same," Jones said. He said they haven't raised their prices in three years. That decision has people lining up for eggs every Sunday at the farmer's market. Mattos said most poultry facilities are at about 85% staffing. He said they should be up to full staff in the next three to four months, which should help with supply.

SACRAMENTO, Calif. —

The latest numbers from the Consumer Price Index show prices for things we use every day have gone up as much as 50%.

You're also paying more for food, like beef, pork, fish and chicken.

Some California poultry farmers set up at the Sacramento farmer's market on Sunday are trying to keep their products affordable for customers, but they're facing rising feed prices and labor shortages.

"Since COVID the prices for our feed and labor have skyrocketed, have gone up significantly," said Dan Jones with Islote Farms.

"With inflation, the biggest thing we have across the board is our feed," said Jeremy Fish with Honest Fish Farm.

Jones and Fish said the rising costs of feeding their chickens are starving their budgets.

"It's the only thing as far as overhead costs, they keep going up, up and up and up. It's tripled the last two years," Fish said.

While these independent farmers use organic, non-traditional sources for feed, larger facilities depend on corn shipped from the Midwest

"Corn is what really drives the price," said Bill Mattos, president of the California Poultry Federation.

Mattos said 60% of the cost of producing chicken is in the corn feed. He said shortages and shipping issues are also factors of rising costs.

"We're up 10%, some cuts maybe more," Mattos said.

Contributing to the problem, less feed is getting to the chicken farmers because the Midwest growers are using corn to make an ethanol blend found at the gas pump.

"We keep pushing for corn to be used for animals and people and not for gasoline, but a lot of Midwest people are trying to make their ends meet too," Mattos said.

Fish said raising chickens with inflation means raising prices for the consumer, but he's trying to get innovative.

"As we can get our feed costs down, we are trying to network with other farmers to coop and buy large bulk feed to keep the cost down to our consumer," Fish said.

Jones, who sells eggs, said he's found a different solution.

"We're not raising our prices just because I don't want to contribute to the inflation issues. I'd rather keep our prices the same," Jones said.

He said they haven't raised their prices in three years. That decision has people lining up for eggs every Sunday at the farmer's market.

Mattos said most poultry facilities are at about 85% staffing. He said they should be up to full staff in the next three to four months, which should help with supply.

What's driving the rising costs of chicken? (2024)

FAQs

Why the price of chicken is rising? ›

High demand and high prices for chicken breasts and other cuts like wings, which remained relatively high throughout 2020, could last until production catches up again, he said. Cold storage supplies of chicken are also down 200 million pounds, roughly 20%, compared to last year, which further tightens the supply side.

Why did chicken used to be expensive? ›

After the 1940's, feedlots became a thing, and more money, but less time went into feeding the cattle for market on grain. Chicken can be fed on the same stuff as cattle (more or less), and have much better feed conversion rates than beef. You can grow more chicken in less time, for less money, than you can grow beef.

Why is chicken feed so expensive? ›

Then, in 2021, feed ingredient prices reached their highest levels in a decade, driven by drought conditions in the upper Midwest, massive Chinese imports, and a return of volatility in the grain markets not seen in many years.

Why is chicken in high demand? ›

Demand for chicken has increased over the past few decades as broiler production became more efficient and chicken started to be seen as a cheaper, healthier source of protein, according to Bloomberg.

What drives chicken prices? ›

To be sure, meat prices are also influenced by a number of other factors including the availability of corn — the other key feed component — as well as labor, logistical disruptions, animal disease outbreaks and consumer demand.

Why meat prices are rising? ›

COVID-19 threw a curveball

It caused a surge in the prices of key cattle feed ingredients like soy, corn, and wheat. As a result, farmers can't afford to support as many cattle, leading to scarcity and subsequently driving up beef prices.

Has the cost of chicken gone up? ›

Meat inflation has been particularly stubborn. Retail chicken breast prices, which averaged less than $3 a pound in March 2020, soared to $4.75 a pound in September 2022. Prices have since inched back to earth but are still elevated, US Department of Agriculture data show.

What is in fake chicken? ›

Although components vary, certain materials are commonly used in meat and meat-free chicken products. These include water, wheat flour, garlic powder, onion powder, salt, and other spices. The main difference is that plant-based chicken is usually made from soy protein and wheat gluten instead of animal flesh.

Did chickens stop laying eggs? ›

Chickens stop laying eggs for a variety of reasons. Hens may lay fewer eggs due to light, stress, poor nutrition, molt or age. Some of these reasons are natural responses, while others can be fixed with simple changes and egg laying can return to normal.

Why are whole chickens so cheap? ›

So when demand for one part is much higher than the others, this creates a supply problem. This is why so many small farmers prefer to sell whole chickens (or half a hog or a side of beef). Processing is also cheaper for whole chickens, and this savings is usually passed on to the customer.

Are whole chickens actually cheaper? ›

Basically yes. As a whole chicken per pound where I live is around $1.89/lb (not organic). And parts start at $2.99–$5.99. BUT, if you are only going to eat one or two pieces of chicken, and don't want chicken several times in a row and would throw away the remainder, then it may not be cheaper.

How many chickens equal a cow? ›

Because chickens are small, it takes about 100 of them to get the equivalent amount of meat from one cow. We eat so much chicken that some archaeologists believe their bones will define our modern age.

How many chickens are born a day? ›

By extrapolating data collected by the Food and Agriculture Organisation of the United Nations, we can estimate that more than 62 million chickens are born worldwide every day. That's a lot of chicken.

What is cheaper chicken or beef? ›

Chicken tends to be one of the more economical meat options per pound, often being less expensive than turkey or pork. It's a versatile protein source and widely available at various price points, making it a budget-friendly choice for family meals.

Will chicken prices go down in 2024? ›

Chicken prices in 2024 are expected to be similar to 2023 in the baseline expectation. However, there is considerable uncertainty to production. If production growth exceeds expectations, chicken prices may drop year-over-year. However, if production is smaller than anticipated, chicken prices may increase.

Will meat prices go down 2024? ›

(NEXSTAR) — After the last few years, it may not be surprising to hear about rising costs at the grocery store (remember when egg prices skyrocketed during the pandemic?). Now, experts are warning another grocery item could reach record prices: beef.

Why is there shortage of chicken? ›

Labor shortages, lack of truck drivers, and shortages of packaging materials like plastic, paper, and aluminum are all contributing to the slowdowns. Farmers are struggling to keep their herds in response to a shortage of antibiotics and feed materials.

Why is there a chicken shortage 2024? ›

Chicken: Rising feed costs, increased regulations, and the looming threat of avian flu present challenges for chicken production.

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