Cheap oil is one culprit as US chicken exports dip

in World News

American companies are shipping less chicken overseas, and cheap oil isn’t helping.

Profits from oil production in South American countries like Venezuela and Western African nations often translate into poultry purchases, said Russ Whitman, senior vice president at commodity researcher Urner Barry. Cuba, a major buyer of American chicken, will resell oil at a profit and buy poultry.

“When oil prices plummet the way they have, these countries can’t turn cash into food,” Whitman said.

Oil is just one factor compounding the anemic export environment. Weak currencies in Mexico and South America are hurting US meat exports. In recent weeks, China has slowed down purchases because of weak consumer demand, Sanderson Farms Inc. executives told analysts on a call to discuss financial results.

The Asian behemoth had been buying up significant amounts of poultry and pork, but now there’s oversupply as restaurants in the newly reopened, post-Covid-19 economy struggle to

Read More: https://businessmirror.com.ph/2020/06/06/cheap-oil-is-one-culprit-as-us-chicken-exports-dip/

Photo Credit: BusinessMirror

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