Meat eaters, hit by the worst food inflation in four decades, are trading from beef to chicken, according to one of the world’s largest grain traders.
Overall inflationary pressures have prompted Archer-Daniels-Midland Co. to trim its animal feed demand outlook in a range of 10 million to 15 million tons worldwide, Chief Executive Officer Juan Luciano told investors on Tuesday. Still, demand for chicken feed is outstripping demand for cattle as consumers shift their consumption.
And with chickens eating a diet of corn mixed with soybean meal — while cattle, particularly in the U.S., are piling up mostly on just corn — ADM is signaling that soybean meal prices may have more upside potential than corn.
“Chicken is more affordable and we source most of the soybean meal,” Luciano said. “Soybean meal remains a very efficient and inexpensive protein substitute for wheat as well, as prices are still relatively high.”
Soybean meal futures are trading back above $400 a ton in Chicago, the highest since July 11 on an intraday basis, after a steep correction that followed soybean futures.
https://www.independent.ie/business/farming/agri-business/agri-food/inflation-hit-consumers-are-trading-down-to-chicken-from-beef-41870968.html Consumers affected by inflation trade from beef to chicken