Sanderson: chicken supply cuts necessary
According to Sanderson Farms Chairman and CEO Joe. F Sanderson Jr., chicken market improvements will have to come from supply cuts.
The poultry industry must get supply in line with demand if chicken prices are to improve, he said, adding that it is particularly important now as Americans are avoiding dining out.
He continued in saying that it is unclear whether current declines in egg sets will be enough to bring supply into balance with the decreased demand.
"We hope the economy will improve, but we suspect it might be well into 2010 before the American consumer returns to restaurants," Sanderson said.
Production at all Sanderson Farms plants is running below capacity, and it is not yet sure when the chicken processor will resume full production. In December, the company posted the largest quarterly loss in its history.
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