Wing Prices Continue Strong In August
09/17/2009 10:39AM
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One major change in the broiler industry in 2009 has been the continued strength of wing prices. In 1999, wing prices in the Northeast market averaged 66 cents per pound and prices for boneless/skinless (B/S) breast meat averaged $1.57 per pound, so the price difference was about 90 cents per pound. Over the years, the price differential narrowed, but even in 2008 prices for B/S breast meat averaged 23-cents per pound higher than wing prices. However, since the start of 2009 the average price of wings has strengthened significantly and has averaged $1.43 per pound, a 6-cent per pound premium over the $1.37 per pound averaged by B/S breast meat. The difference between wing prices and B/S breast meat prices increased in August to 10 cents per pound.
A number of factors have come together to push up wing prices. First, the number of broilers slaughtered over the first half of 2009 is down 6 percent from the previous year, thus reducing the supply. Second, reported wing exports during the first 6 months of 2009 were 13 percent higher than in the first 6 months of 2008. These factors have combined to lower stock levels. At the end of June, reported stocks of wings were 31.8 million pounds, down 19 percent from the previous year. The lower available supply, higher exports and an expansion in the demand for wings as more food service outlets offer them have combined to put upward pressure on prices.
Source: Livestock, Dairy and Poultry Outlook, USDA