Is a chicken shortage coming? Industry insiders weigh in on predicted price hikes
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It's no secret that Australians love their chicken. It's one of the most popular protein sources in the country and is eaten by people of all ages and in all different ways. Plus, like any other meat, chicken is usually relatively affordable.
However, news of a chicken shortage has been circulating for the past few weeks, sparking fears that prices will skyrocket ahead of the holidays.
In a report from online marketplace Foodbomb, it was said that 'chicken is soon to be in short supply, with prices set to rise 12 per cent before Christmas'.
The warning was based on comments from Jim Hoang, who is the sales manager for Victoria's largest chicken distributor, Master Poultry.
According to him, there has been a significant drop in supply at their end, which they believe will affect the whole chicken market.
He explained: 'We haven't seen any price increase on our free-range chickens for five years, but recently we've had two price increases.'
'Chicken prices have gone up 25 per cent and we've been told to prepare for more, with another price increase.'
It is understood that the rising cost of petrol and electricity has put additional pressure on industry players..
After the claims, Foodbomb Head of Supplier Relations, Nathan Russo, said that supermarkets like Coles, Woolworths, and others might be affected by the shortage, as major suppliers would prioritise fulfilling the needs of larger buyers.
'The food industry usually feels it first, ahead of consumers, because major supermarkets get first dibs on supplies due to contractual reasons,' Russo's statement read.
'Food suppliers, hospitality venues, and caterers are left to fend for whatever supplies remain and this doesn't really trickle down to affect customers for weeks, sometimes months.'
He went on to say that while the shortage is currently a supplier problem, the reality is that it 'will hit all of Australia soon'.
However, industry insiders claim that a looming chicken shortage is unlikely despite petrol and electricity price increases, post-pandemic labour shortages, and limited wheat supplies needed for chicken feed.
According to the Australian Chicken Meat Foundation (ACMF), they have no knowledge of supply challenges since they 'are not aware of any issues in chicken meat supply or any anomalies across the broader supply chain’.
'Australians will be able to enjoy their favourite meat for Christmas and throughout the holiday season,' an ACMF spokesperson said.
The group also echoed the sentiments of Master Poultry, Oroso Poultry, and Australian Poultry Hatching and Processing, who all denied that a price hike is coming.
Coles and Woolworths both denied the claims, with Woolworths echoing the ACMF's statement and Coles saying this was not something they were experiencing.
Poultry meat production for 2022-23 is set to reach 713 million tonnes, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), which stated that Australia does not have a food-security problem.
The ABARES website also declared that Australia was one of the most food-secure nations in the world, noting that while temporary shortages of some food items exist in supermarkets, the country sustainably produces more food than it consumes.
So, there you have it, members! Let us know your thoughts in the comments below.
However, news of a chicken shortage has been circulating for the past few weeks, sparking fears that prices will skyrocket ahead of the holidays.
In a report from online marketplace Foodbomb, it was said that 'chicken is soon to be in short supply, with prices set to rise 12 per cent before Christmas'.
The warning was based on comments from Jim Hoang, who is the sales manager for Victoria's largest chicken distributor, Master Poultry.
According to him, there has been a significant drop in supply at their end, which they believe will affect the whole chicken market.
He explained: 'We haven't seen any price increase on our free-range chickens for five years, but recently we've had two price increases.'
'Chicken prices have gone up 25 per cent and we've been told to prepare for more, with another price increase.'
It is understood that the rising cost of petrol and electricity has put additional pressure on industry players..
For most Australian households, chicken is a holiday staple. Credit: Pexels/Lukas.
After the claims, Foodbomb Head of Supplier Relations, Nathan Russo, said that supermarkets like Coles, Woolworths, and others might be affected by the shortage, as major suppliers would prioritise fulfilling the needs of larger buyers.
'The food industry usually feels it first, ahead of consumers, because major supermarkets get first dibs on supplies due to contractual reasons,' Russo's statement read.
'Food suppliers, hospitality venues, and caterers are left to fend for whatever supplies remain and this doesn't really trickle down to affect customers for weeks, sometimes months.'
He went on to say that while the shortage is currently a supplier problem, the reality is that it 'will hit all of Australia soon'.
However, industry insiders claim that a looming chicken shortage is unlikely despite petrol and electricity price increases, post-pandemic labour shortages, and limited wheat supplies needed for chicken feed.
According to the Australian Chicken Meat Foundation (ACMF), they have no knowledge of supply challenges since they 'are not aware of any issues in chicken meat supply or any anomalies across the broader supply chain’.
'Australians will be able to enjoy their favourite meat for Christmas and throughout the holiday season,' an ACMF spokesperson said.
The group also echoed the sentiments of Master Poultry, Oroso Poultry, and Australian Poultry Hatching and Processing, who all denied that a price hike is coming.
Coles and Woolworths both denied the claims, with Woolworths echoing the ACMF's statement and Coles saying this was not something they were experiencing.
Poultry meat production for 2022-23 is set to reach 713 million tonnes, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), which stated that Australia does not have a food-security problem.
The ABARES website also declared that Australia was one of the most food-secure nations in the world, noting that while temporary shortages of some food items exist in supermarkets, the country sustainably produces more food than it consumes.
So, there you have it, members! Let us know your thoughts in the comments below.
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