Chicken Supply Cuts Improve Producer Margins, Goldman Sachs Says

Chicken supply cuts are “pushing margins in the right direction” at U.S. producers Sanderson Farms Inc. (SAFM) and Tyson Foods Inc. (TSN), Goldman Sachs Group Inc. said.

There’s “upside risk” to earnings at both companies if margins keep improving ahead of what Goldman has modeled, analysts led by Lindsay Drucker Mann in New York said yesterday in a note.

The analysts said they were “encouraged” by “positive” remarks about chicken prices from both companies at Goldman’s Agricultural Biotech Forum in New York.

To contact the reporter on this story: Simon Casey in New York at scasey4@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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