Source: Michael Fielding, MEATINGPLACE, 2/3/12

The total protein availability of beef, pork and chicken is expected to drop 3.2 percent to the lowest level since 1991, although the average chicken producer is back in the black. Operating margins (based on spot chicken prices and rolling spot feed costs) have recovered and are currently running at about $0.05 per pound, according to one industry analyst.

In a report released Monday, Deutsche Bank’s Christina McGlone said that eggs set continue to run below year ago levels, now in the 5-6 percent range and that breeding flock contraction has continued with pullet placements down consistently since July.

Weights have finally come in, leading to lower ready-to-cook pounds on the market, wrote McGlone, who reported that the cutbacks are helping items like tenders and wings more than breasts owing to the structural increase in bird sizes.

The latest Cold Storage data shows inventory has fallen year-on-year since August. Meanwhile, December inventories were down a substantial 21.6 percent year-on-year.

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