Chicken price up $30 in a month, but still competitive

The price of chicken meat increased by about 40% during the last four weeks, stood out to The Observer from the Meat Vendors Union (UVC). From the poultry sector, it was explained that the reason is a drop in production that follows a reverse cycle, with a high supply and low prices.

Heber Falero, director of one of the unions that brings together butchers, reported that In the last 30 days, the price that the merchant pays per kilo rose $30, going from $71 to $101.

That rise happens from a price that was lowunlike the recent increase in the price of the main meat consumed in the country, beef, whose value these days remains stable, according to Falero.

Germán Möller, president of the National Association of Butchers (ANC), indicated that in the last week the increase was $10 per kilo, with which in the case of his business, located in the Conciliación neighborhood, depending on the brand, the price of a kilo of whole chicken ranges from $110 to $120 for frozen and from $140 to $160 for fresh.

“The price of chicken has risen, it is true, but it is still very competitive, especially when compared to beef”Moller mentioned.

A source linked to the industrial sector admitted that the price rose, but limited the period to the last two weeks and remarked that this happened after a very pronounced fall in the price of the product.

As indicated to The Observerfrom January to May (last monthly exercise concluded in 2022) the average price (taxes included) of sale of the plants to the commercial chain had the following indicators:

January $79.57 per kilo
February $86.33 per kilo
March $97.89 per kilo
April $92.52 per kilo
May $78.43 per kilo

The same source cited the sales prices of chicken to the public, based on the National Institute of Statistics (INE), for the last three months:

March $151.27 per kilo
April $153.79 per kilo
May $146.23 per kilo

From the industrial sector it is pointed out that the price to the public did not evolve like the sale price of the plants.

On the reasons for the current rise, it was explained that Chicken production in Uruguay has been increasing, accompanying the growth in consumption (25% in the last two years), but there are times when it is produced in excess and, as happens in other areas such as farms, given the excess productive the price falls.

It affects this that the alternative of chicken export is not oiled, an activity that only one of the poultry firms develops.

When this scenario of greater supply and low prices occurs, As the weeks go by, chicken production adjusts, given that at such low prices it cannot be produced and as a consequence the price rises again.

This is a typical scenario of supply and demand, in a closed market, it was explained, ruling out the existence of any additional reason that at other times had an impact, such as when there was a high mortality of animals due to excess heat.

eat more chicken

Based on data from the National Meat Institute (INAC), during 2021 the consumption of beef (leader in this food segment) was 46 kilos per person per year, with an increase of 0.3 kilos compared to 2020. The second most consumed meat is still chicken, with 23.7 kilos and a growth of 2.9 kilos from 2020 to 2021. The podium is completed by pork, with 19.3 kilos and a growth of one kilo in 2021 .