Tuesday, February 14, 2012
In today’s economy, chicken farmers and meat producers are struggling to profit in this industry. This is due to the high rise in cost of chicken feed as well as a decline in the demand for chicken products. However, the amount of chicken being produces has not changed that much in comparison to the amount of chicken produced last year. This has created a surplus of chicken because there are fewer buyers than years past. In effect, this causes the price of chicken to go down. People however, are still not buying the chicken, so what could be done with all the extra chicken? The government decided to purchase $40 million worth of chicken products that could be used to feed needy Americans. This in turn, benefits the industry se, because the surplus of chicken will decrease allowing struggling producers to raise their prices and cover the costs of their production. This government intervention has greatly helped the industry stabilize during these difficult economic times. Hopefully, the demand for chicken products will increase over the next year rather than continue its decline. As of right now, the expectations for 2012 are not looking too great.