June 7

6/7 – The JBS cyber-attack last week affected all 3 proteins. Right now, chicken is the biggest (protein) issue for foodservice, but so far the hit to Pilgrim’s looks to be limited/manageable. The attack could not have come at a worse time with restaurants struggling to staff-up, supply-up, and reopen. Pre-hack, chicken production was up 2% in April and hatchery output was up 6% - pointing to a potential 2-3% increase in summer broiler production. But these numbers compare to last year’s Covid-decimated levels. We’re really still struggling just to get back to where we were in 2019. Boneless skinless breast prices, which started April at $1.40/lb, peaked at $2.25 in late May and are currently $2.13. Whole wings at $3.04 haven’t been below $2.70 since Jan. But even price is secondary right now as rumors fly about poultry suppliers walking away from chain restaurant business.