Inflation-Hit Consumers Are Trading Down to Chicken From Beef
- As food inflation rises, consumers choose more affordable cuts
- ADM sees good soymeal demand as chicken margins stay positive
Shoppers inside a grocery store in San Francisco, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Meat eaters stung by the worst food inflation in four decades are trading down from beef to chicken, according to one of the world’s biggest crop traders.
Inflation pressure overall has Archer-Daniels-Midland Co. reducing its outlook for animal-feed demand in a range from 10 million to 15 million tons globally, Chief Executive Officer Juan Luciano told investors Tuesday. Still, demand for chicken feed is outpacing that for cattle as consumers shift their consumption.