There are many drivers of domestic chicken prices but the most surprisingly driver is geopolitical. Americans love white meat. It’s a shame, I know. However, that means domestic producers of chicken need to export the extra dark meat to other countries, primarily Russia. Russia plays the chicken card and bans imports whenever she wants something. The last time this happen was in W’s first term after he passed protectionist steel policies that helped PA but hurt Russia. When Russia bans imports, the US has excess supply of dark meat driving prices down.
Well, Russia has banned US imports again. There is some expectation that Obama will address this issue when Medvedev comes to the US this Wednesday when they discuss everything from Iran to a new nuclear treaty to chicken thighs. I wonder if prices are starting to assume a resolution. Just a guess.
