Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 11/23/10

Broiler-type chicks hatched during October totaled 767 million, up 5 percent from October 2009, while eggs in incubators totaled 618 million on Nov.1, up 7 percent from a year earlier, according to USDA’s Chicken and Eggs report.

USDA reported leading breeders placed 6.88 million broiler-type pullet chicks for future domestic hatchery supply flocks during October, up 8 percent from October 2009.

Even though pullet hatchings had an easy comparison to a year ago when they decreased by 9.3 percent, J.P. Morgan analyst Ken Goldman voiced concern about the gains.

“We are not certain why the chicken industry is increasing the breeding flock at a time when margins are set to be squeezed by higher feed costs,” he wrote in a note to investors. “We appreciate what Tyson said earlier today, that profitability should be retained, but if supply keeps increasing, profits eventually will be squeezed.”

Goldman called the report slightly negative for chicken integrators such as Tyson Foods and Sanderson Farms.

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