Increased demand for dark chicken meat
For much of this year, demand for dark meat has kept inventory for the entire back half of the chicken well-cleared. Prices for both fresh thigh meat and fresh and frozen whole leg meat are at the third highest they have ever been, following 2021 and 2022. For frozen thigh meat, only the prices experienced in 2022 top those of this year. Market participants note active food service and retail demand for fresh whole leg and thigh meat, that some processors are unable to meet.
To make the most of the opportunity for profit that the call for dark meat has offered, some producers are processing items in manners that are typically unconventional. Not only are whole legs and thighs being deboned, but certain sellers are mentioning that they are deboning leg quarters and, more frequently, drumsticks as well. Additionally, sales of saddles have been inked at prices higher than Expana’s quotations for single-leg quarters. The continued requests for meat have kept supplies of all back half clean, but consistent upward price movements within the domestic market have yet to be detected. The same cannot be said for drumsticks in the export market. While demand from major international buyers including those in Asia, Africa, and the Caribbean didn’t necessarily increase, tight supplies driven by demand from the domestic arena influenced export sellers to ask for higher prices during the third week of July.
When asked why they think there is such a strong, consistent call for back half items, market participants frequently tout the relative affordability of dark meat compared to white meat, as well as the cooking qualities. Dark meat has a higher fat content than white meat, which leads to a juicier cut. In fact, according to the USDA’s Food Data Central, the total fat content of boneless thigh meat is approximately four times greater than that of boneless breast meat. This makes it more difficult to overcook and dry out and more attractive to the average consumer.
Turkey tails in the export market
Turkey’s tails have proven to be an active mover in the export market over the past couple of months. Since the beginning of May, our West Port quotations have risen by $0.12/lb. and East Port quotations have increased by $0.10/lb. This is coming off mostly sideways trading from the end of August for West ports and the end of January for East ports following a suspension period that lasted over a year for the quotations. Before the suspension was put in place, prices were at extremely high levels. The week before to the quotations were suspended, prices of tails for both ports were over double the 10-year average. In 2020 prices for tails started to rise, driven by supply chain issues created by the COVID-19 pandemic. Then HPAI came onto the scene and continued to not only limit the availability of tails but also the locations to which tails could be sold. This led to record high prices and international buyers pulled their hats out of the ring, tanking demand. Instead of prices dropping, movement nearly came to a standstill which resulted in the quotations being suspended until enough movement could be detected to report the market effectively. Today, prices are just slightly above the 10-year averages, and production is readily absorbed.
Since the end of May, major buyers of tails have included Mexico, New Zealand, and Samoa. According to an article published by NPR, turkey tails became a popular dish in Samoa following World War II. Due to the relatively higher fat content of tails, they were banned from the Samoan islands in 2007 as part of a movement to try and curb obesity. They were later reinstated in 2011. Turkey tails have been an important cultural food in Samoa, despite being a relatively recent addition to the cuisine in the grand scheme of history. With continued exports of turkey tails to Samoa, it appears that, at this time, keeping with tradition outweighs some of the health concerns that consumers of tails worry may be associated with them.
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