Chicken drumsticks find their way to American dinner tables
By Bob Burgdorfer |
May 26, 2011, Thursday
|
Print Edition
Print Edition
CHICKEN drumsticks are finding their way to American dinner tables as a slowdown in exports has kept more of the dark meat in grocery stores and warehouses in the United States.
Historically, chicken dark meat - long shunned by US consumers in favor of white meat chicken breast - has largely been exported by US chicken companies.
Now, the low-priced meat may be an easy sell with unemployment rates high and a record 44.2 million Americans on food stamps.
A bone-in chicken leg quarter (drumstick and thigh combined) is about 50 cents a pound wholesale while it costs US$1 or more for boneless chicken breast.
Tyson Foods Inc, the top US chicken producer, said it will divert more of its chicken dark meat to domestic markets. In addition to drumsticks and thighs, Tyson this summer will market a variety of dark meat items, including pizza toppings, ground chicken and smoked sausage.
"We are making it more available to US consumers than it has been in the past," Tyson spokesman Worth Sparkman said.
"Consumers watching their pocketbooks are quickly recognizing the value in these products, so we expect to see growth there," he said.
Other meat companies may follow because dark meat chicken is piling up in warehouses. The supply of leg quarters is the largest since 2004.
"If you are eating on food stamps, leg quarters look like a pretty good buy," said Paul Aho, economist at Poultry Perspective.
"We still have 9 percent unemployment. It will be interesting to see, when people do go back to work, if they will keep eating leg quarters."
And the price discrepancy between white meat and dark meat could widen further as domestic supplies increase, according to experts.
"Every dark meat item in the US is being sold at a larger discount than if we had exports, because we are overwhelming the domestic market," said Jim Robb, economist at the Livestock Marketing Information Center which provides economic analysis to the livestock industry.
The addition of this lower-cost meat on US store shelves has the potential to draw business away from higher-priced beef and pork as consumers struggle to save money.
"It has not yet spilled over into the red meats or turkey. Given the economic environment we are in, it is surprising we have not seen more spillover. That does not mean it won't happen soon," Robb said.
Historically, chicken dark meat - long shunned by US consumers in favor of white meat chicken breast - has largely been exported by US chicken companies.
Now, the low-priced meat may be an easy sell with unemployment rates high and a record 44.2 million Americans on food stamps.
A bone-in chicken leg quarter (drumstick and thigh combined) is about 50 cents a pound wholesale while it costs US$1 or more for boneless chicken breast.
Tyson Foods Inc, the top US chicken producer, said it will divert more of its chicken dark meat to domestic markets. In addition to drumsticks and thighs, Tyson this summer will market a variety of dark meat items, including pizza toppings, ground chicken and smoked sausage.
"We are making it more available to US consumers than it has been in the past," Tyson spokesman Worth Sparkman said.
"Consumers watching their pocketbooks are quickly recognizing the value in these products, so we expect to see growth there," he said.
Other meat companies may follow because dark meat chicken is piling up in warehouses. The supply of leg quarters is the largest since 2004.
"If you are eating on food stamps, leg quarters look like a pretty good buy," said Paul Aho, economist at Poultry Perspective.
"We still have 9 percent unemployment. It will be interesting to see, when people do go back to work, if they will keep eating leg quarters."
And the price discrepancy between white meat and dark meat could widen further as domestic supplies increase, according to experts.
"Every dark meat item in the US is being sold at a larger discount than if we had exports, because we are overwhelming the domestic market," said Jim Robb, economist at the Livestock Marketing Information Center which provides economic analysis to the livestock industry.
The addition of this lower-cost meat on US store shelves has the potential to draw business away from higher-priced beef and pork as consumers struggle to save money.
"It has not yet spilled over into the red meats or turkey. Given the economic environment we are in, it is surprising we have not seen more spillover. That does not mean it won't happen soon," Robb said.
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