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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Broiler Week

07/30/2021

Weekly Broiler Production and Prices, July 30th 2021.

Chick Placements.

The Broiler Hatchery Report released on July 28th 2021 confirmed that a total of 241.5 million eggs were set during the week ending July 24th 2021, up six percent from the corresponding week of the previous year and 1.7 percent (4.0 million eggs) more than the previous week in 2021.

 

A total of 177.3 million day-old chicks were placed among the 19 major broiler-producing states during the week ending July 24th 2021. Total chick placements for the U.S. amounted to 186.7 million, one percent less than the corresponding week in 2020 and 0.2 percent (0.3 million) more than the previous week. Claimed average hatchability was 80.1 percent for eggs set three weeks earlier, (80.1 percent for the previous week). Each 1.0 percent change in hatchability represents 2.4 million chicks placed per week with current settings.

 

Cumulative placements for the period January 2nd 2021 through July 24th 2021 amounted to 5.42 billion chicks, up one percent from the corresponding period in 2020.

 

During the period June 19th through July 24th 2021 weekly placements were on average 1.5 percent lower compared with the corresponding six weeks in 2020. This represents on average, placement of 2.9 million fewer chicks per week. This is due to setting a proportion of hatching eggs with depressed fertility from high-yield breed combinations maintained by some integrators. Additional breeder flocks have been placed to compensate for reduced fertility and hence hatch but their contribution has yet to be attained based on age. The sharp increase in eggs set during the past week should be reflected in higher placements during mid-August and broilers harvested at the beginning of October

 

Broiler Production

According to the July 30th USDA Broiler Market News (Vol. 68, No. 30) for the processing week ending July 24th 2021, 170.1 million broilers were processed during the past week (previous week 163.1 million) at an average live weight of 6.39 lbs. (6.43 lbs. last week) and a nominal yield of 76 percent. The number of broilers processed was 3.7 percent more than the corresponding processing week in 2020. Processed (RTC) broiler production for the week was 825.9 million lbs. (375,406 metric tons), (796.9 million lbs. last week), 7.6 percent more than the corresponding processing week in 2020. In 2021 Processed (RTC) production attained 23.4 million lbs. (10,629,174 metric tons), 0.1 percent less than YTD 2020.

 

Broiler Prices

The USDA National Composite Weighted Wholesale price on July 30th 2021 was down 0.9 cent per lb. from the previous week to 105.0 cents per lb., compared to 64.9 cents per lb. during the corresponding week of 2020; 105.6 cents per lb. for July 2021 and 82.0 cents per lb. for the three-year average. The industry still is impacted by the contraction in the food service segment following imposition of COVID-19 restrictions, although QSRs are using increasing quantities of breast meat for sandwiches and nuggets.

The USDA Southern States (SS) benchmark prices in cents per lb. (rounded to nearest cent) as documented in the Broiler Market News Reports July 30th 2021 are tabulated with a comparison with the previous week:-

 

Product

USDA SS1. Previous week

Cents/lb.

USDA SS1. Past week

Cents/lb.

 

Difference.

%

Whole Index

53

51

-3.8

Tenderloins

268

268

Unchanged

B/S Breast

179

177

-1.1

Whole Breasts

72

70

-2.8

B/S Thighs

196

197

+0.5

Whole Thighs

47

49

+4.3

Drumsticks

41

41

Unchanged

Leg Quarters

43

43

Unchanged

Wings (cut)

302

299

-1.0

  1. USDA Southern States prices

 

The USDA posted live-weight data for the past week ending July 24th 2021 and YTD 2021 were:-

Live Weight Range (lbs.)

<4.25

4.26-6.25

6.26-7.25

>7.76

Proportion past week (%)

17

27

30

26

Change from 2020 YTD (%)

-7

-7

+5

+3

 

During the week ending July 24th broilers for QSR and food service (live, 3.6 lb. to 4.3 lb.) represented 17 percent (previous week 21 percent) of processed volume.

 

On July 26th 2020 cold storage holdings of processed poultry other than chicken at selected centers amounted to 79,581 lbs., 1.7 percent less than the inventory of 80,968 lbs. on July 1st 2021.

 

According to the most recent July 22nd 2021 USDA Cold Storage Report, issued monthly, stocks as of June 30th 2021 compared to June 30th 2020 showed differences with respect to the following categories:-

  • Total Chicken category attained 738.4 million lbs. (335,620 metric tons) corresponding to an average of two weeks production based on average YTD 2021 weekly RTC output. The June 30th 2021 inventory was down 17.1 percent compared to 866.7 million lbs. (393,961 metric tons) on June 30th 2020
  • Leg Quarters were up by 0.3 percent to 68.4 million lbs. consistent with the data on exports. Inventory was up 6.0 percent from May 31st To evaluate year-over-year comparisons, anticipated purchases by China were initially delayed by COVID-19 port disruptions during the first quarter of 2020. The USDA combined the categories of feet and in-bone products into a comprehensive figure from the second quarter of 2020 onwards. Given the trend in inventory of leg quarters it is evident that this category continues to be shipped to a number of importing nations including China.
  • The Breasts and Breast Meat category was down 9.2 percent from June 30th 2020 to 195.1 million lbs. indicating stable domestic demand from retail and a slow recovery of the food service sector
  • Wings showed a 21.1 percent decrease from June 30th 2020, contributing to a stock of 44.6 million lbs. The level of inventory in this category declined with resumption of college and professional sports events. This category was 6.1 percent higher than on May 31st
  • Paws and Feet increased on June 30th 2021 by a noteworthy 30.0 percent to 32.9 million lbs. from June 30th 2020 although inventory decreased 6.0 percent from May 30th 2021*. March and April 2020 export data suggested displacement of sales from Hong Kong to China by comparing previous data for Hong Kong. Prior to April 2020 it is presumed that approximately half of the shipments of paws and feet destined for Hong Kong were landed and transshipped to the Mainland. Data released by the USAPEEC confirmed that for the first five months of 2021 105,000 metric tons of paws were shipped to China. This represented 57.5 percent of volume and 80.4 percent of value of shipments to China at a unit price of $2,457 per metric ton.
  • It is noted that the Other category comprising 305.8 million lbs. was down 21.1 percent from June 30th 2020 but represented a significant 41.1 percent of inventory on June 30th The high proportion in the Other category suggests further classification or re-allocation by USDA to the designated major categories.

*(See Poultry Meat Export Report covering January-May 2021 under the STATISTICS Tab)

 

June 2021 Production

The USDA Poultry Slaughter Report released on July 23rd 2021 covering June 2021 comprising 22 working days, recorded a total of 802.2 million head processed (up 3.7 percent from June 2020); Total live weight of 5.19 billion lbs. was up 3.6 percent from June 2020; Unit live weight of 6.47 lbs. was down 0.2 percent from June 2020. RTC attained 3.91 billion lbs., up 3.5 percent from June 2020 with a WOG yield of 75.3 percent. The proportion marketed in June 2021 as chilled comprised 93.2 percent of output. Ante-mortem condemnation as a proportion of live weight attained 0.20 percent in June 2021 (0.20 percent in June 2020). Post-mortem condemnations as a proportion of processed mass corresponded to 0.50 percent in June 2021. (0.55 percent in June 2020).

 

Comments

Mexico has recognized the OIE principle of regionalization after intensive negotiations between SENASICA and U.S. counterpart the USDA-APHIS assisted by USAPEEC. Provided importing nations adhere to OIE guidelines on regionalization, localized outbreaks of avian influenza and Newcastle disease should not materially affect exports. The response of China is less predictable given their action regarding E.U. nations in response to African swine fever and avian influenza but their action will be influenced more by self-interest than scientific considerations.

 

During 2020 broiler exports to Mexico attained 683,018 metric tons. This represented 21.1 percent of export volume and 18.7 percent of export value (amounting to $605 million) of the total $3.23 billion. In the absence of the USMCA signed a year ago, tariffs on chicken could have risen to 75 percent of value creating a non-competitive situation favoring Brazil and Argentina. Fifth-ranked Canada imported 149,851 metric tons of broilers and parts during 2020 valued at $289.2 million. Collectively our NAFTA/USMCA neighbors imported broiler products to the value of $869 million during 2018, $901 million in 2019 and $864 million in 2020.

 

During 2020 exports of broiler products to China including feet attained 512,587 metric tons valued at $732 million with a unit price of $1,428 per metric ton. Shipments to China were offset by losses to Hong Kong with at least half of U.S. imports transshipped to the mainland prior to April 2020.

 

For the first five months of 2021 exports of broiler parts and feet combined attained a volume of 1,536,432 metric tons (1,462,851 metric tons in January-May 2020) with a value of $1,749 million ($1,496 January-May 2020). Unit value increased 13.7 percent from January-May 2020 to $1,163 for the most recent 5-month period in 2021.

Subscribers are referred to the Monthly Export Review in this edition and the 2021 USDA Projection under the STATISTICS Tab.


 
Copyright © 2024 Simon M. Shane