Cheaper Corn Could Mean Cheaper Chicken
NEW YORK (CBSNewYork) — A record corn crop has produced an unexpected windfall: cheaper chicken prices. But will consumers see lower prices in grocery stores?
As CBS 2′s Emily Smith reported, the latest numbers by the National Corn Growers Association show that a bushel of corn is selling for a little more than $5, down from nearly $7 last year.
The reason for the cost cut? The United States is experiencing a record corn harvest. It comes on the heels of 2012, when farmers experienced one of the worst droughts ever.
Analysts predict wholesale chicken prices will drop 92 cents a pound in the next year.
Katherine Boylan with Raleigh’s Poultry Farm in Kings Park, on Long Island, said paying for corn feed represents the biggest burden to farmers. She said she has not seen her price of feed come down, but admitted if she does, it could spur an increase in chicken production — and eventually a price decrease for consumers.
Shoppers welcomed the prospects of a price drop.
“I think it’s great,” one man said. “Beautiful. Hope it happens.”
“Chicken is like what we eat every day almost, but if the price stays down, we will even eat more,” a woman said.
Grocery store prices are also affected by factors such as fuel and location.
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