U.S. buys $40 million of chicken products
There is a glut in the chicken market now after producers pushed production levels higher and demand remained flat, said Bill Roenigk, senior vice president and chief economist for National Chicken Council. USDA reports show that the inventoriy of chicken in June was 13.1 percent higher than last year, while prices for chicken breasts and wings are down more than 20 percent from last year.
The chicken purchase announced Monday, USDA Secretary Tom Vilsack said, will "provide support to the broiler industry and the many small independent poultry growers that depend on the industry for their livelihood. Broiler producers have already cut production substantially and this purchase will help them bring supply in line with demand."
Source: Wall Street Journal