Chicken, it seems, is gaining popularity around the world.
Tyson Foods reported Monday that the company made enough in its chicken segment in the second quarter of its fiscal year to overcome continued losses in the firm’s beef business.
A market analyst said the growth in the popularity of chicken as the center-of-the-plate protein could have similar reasons among consumers. Chicken’s price and versatility are universally attractive to inflation-strapped shoppers.
CHINA CONSUMPTION GROWING
The USDA’s Foreign Agricultural Service reported last week that “poultry consumption in the Yangtze River Delta continues to grow, with Jiangsu and Anhui provinces driving increases, while Shanghai remains a mature and stable market.
“Poultry is gaining market share from pork, supported by its lower cost, versatility and perceived health benefits,” the FAS Global Agricultural Information Network report said. “Foodservice expansion, e-commerce development and cold-chain improvements are key drivers of demand, particularly for convenient and value-added poultry products.”
Historically, China has been a dominant pork consumer, the FAS said. However, poultry has been gaining ground as an alternative to pork.
Data from the Chinese National Statistics Bureau show per capita poultry consumption increased from 8.4 kg, or 18.5 pounds, in 2015 to 12.5 kg, or 27.6 pounds, in 2024 — implying the average Chinese consumer now eats about 1.5 times as much poultry as they did a decade ago, the FAS said.
At the same time, pork consumption dropped as rising prices accelerated substitution to 68% of total meat consumption, USDA data showed. Chicken rose to 18% in total, leaving beef at 14%.
REGIONAL GAINS
In the past 10 years, poultry consumption in the Yangtze River Delta, which generates about 25% of China’s total GDP, exhibited an overall upward trend, accompanied by regional divergence, the FAS said. A clear contrast emerged between Shanghai and its neighboring provinces — with particularly strong growth observed in Jiangsu and Anhui.
Shanghai’s per capita poultry consumption remained largely stable, registering a modest Compound Annual Growth Rate of 0.8%, the FAS said. Consumption fluctuated within a narrow range, from 12.1 kg, or 26.7 pounds, in 2015 to a peak of 14.2 kg, or 31.3 pounds, in 2021, reflecting the characteristics of a mature and saturated urban market.
In Shanghai, dietary patterns are highly diversified, and poultry competes with a wide variety of alternative protein sources, limiting expansion in per capita demand, the FAS said.
By contrast, Jiangsu, Zhejiang and Anhui all showed robust growth in poultry consumption over the same period, the FAS said. Jiangsu and Anhui emerged as the regional leaders, with CAGRs of 5.9% and 5.7%, respectively.
By 2024, Anhui’s per capita poultry consumption reached 17.8 kg, or 39.2 pounds, surpassing all other regions in the dataset and highlighting its rapid demand expansion.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $255.63 per cwt to $256.09, compared with last week’s range of $246.00 to $250.77 per cwt. FOB dressed steers and heifers went for $390.92 per cwt to $393.50, compared with $385.81 to $392.76.
The USDA choice cutout Monday was up $2.45 per cwt at $391.56 while select was up $3.55 at $390.60. The choice/select spread narrowed to $0.96 from $2.06 with 80 loads of fabricated product and 24 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $446.41 per cwt, and 50% beef was $190.79.
The USDA said basis bids for corn from feeders in the Southern Plains were $1.08 to $1.20 a bushel over the Jul corn contract, which settled at $4.85 3/4 a bushel, up $0.05 1/2.
The CME Feeder Cattle Index for the seven days ended Friday was $375.54 per cwt, up $1.51. This compares with Monday’s May contract settlement of $366.60, down $4.80.