An analyst from BB&T Capital Markets predicted that foodservice sales will continue to slide and more chicken production cutbacks will be needed for processors to break even.
As reported by Meatingplace, analyst Heather Jones, in a note to investors, pointed to last week's December retail sales data on real (deflated) food purchases away from home, which showe a 6.7 percent year-on-year decline. She said foodservice comprises an estimated 40 percent to 45 percent of total chicken sales, making the 6.7 percent foodservice demand decline translate into a 3-percent drop in total demand. She also noted decreased chicken export demand.
