Peter Lynch once said that many times, good investment opportunities are waiting for us to discover, and he recommends everyone to be a caring person in life.
And the most frequent contact between you and me in our daily life is the “eating” industry.
There is always no shortage of investment opportunities in this industry, and everyone may feel more deeply in the near future. At present, global food prices are rising, and the food crisis is intensifying, affecting all aspects of daily diet.
In addition to agricultural products, meat prices have also risen rapidly. Among them, chicken, the most consumed meat in the world, has also set off a price hike frenzy in many countries around the world.
The price of chicken rose more than 16 percent in the past year through April, according to the latest data from the U.S. Bureau of Labor Statistics.
The price of chicken in Malaysia has even soared by 45% recently, and there is a shortage of chicken supply; the price of chicken in Singapore has risen by 5.7% in April alone.
But it is obvious that this round of chicken price hikes may not be over yet.
Affected by the situation in Russia and Ukraine, the global food crisis has begun to emerge, and the list of countries banned from grain export has continued to grow, which has directly led to limited grain supply and high prices of veterinary medicines, which greatly affected the cost control of the chicken industry.
In addition, under the background of the epidemic and trade conflicts, the global value chain and supply chain have been severely impacted by non-economic factors, and the uncertainty of global food supply has increased, which further exacerbated the rise in prices.
In this context, many meat giants in the United States have made a lot of profits. Take Tyson Foods, the largest producer of processed chicken in the U.S., for example.
Its recently released financial report shows that the average price of its chicken in the second fiscal quarter increased by 14.4% year-on-year, and its adjusted earnings per share was $2.29, a year-on-year increase of 76%; sales were $13.117 billion, exceeding market expectations of $12.84 billion; Net profit was US$833 million, up 75% year-on-year.
Tyson expects total sales in fiscal 2022 to be between $52 billion and $54 billion as inflation pressures continue into the second half.
So, apart from Tyson, which meat manufacturers will also benefit from the increase in global chicken prices? Here is a basket of “chicken stocks”, which is for reference only by cattle lovers, and is not recommended as a single stock.
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This article is reprinted from: https://news.futunn.com/post/15997374?src=3&report_type=market&report_id=206903&futusource=news_headline_list
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