Source:  Tom Johnston, MEATINGPLACE, 6/22/11

Leading breeders placed 7.72 million broiler-type pullet chicks for future domestic hatchery supply flocks during May 2011, down 8 percent from May 2010, according to USDA’s monthly Chicken and Eggs report published Tuesday.

That, notes JP Morgan equity analyst Ken Goldman, marks the largest year-on-year decline in the last two years and points processors such as Tyson Foods and Sanderson Farms in a more profitable direction.
Last year in May, however, that number rose more than 9 percent when the industry hatched more pullets in any month on record, Goldman said in a note to investors. And, as a percent of the total layer flock, the number of pullets hatched remained higher than normal levels at this time of year.

Total layer inventory dipped by about 1 percent, and continued productivity gains have partially offset recent egg set declines, he noted.

“Whether the comparison was easy or hard, the industry cut a significant amount of production year on year,” Goldman said. “If this trend can continue, it will benefit meat production levels starting next February or so.”

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