Australia: chicken flats could be a real hit with consumers

Australia’s chicken-fries could be on the menu in the coming months as part of the nation’s economic resurgence.

Chicken-fry prices have been in the double digits in some parts of the country since late 2016, prompting the Australian Bureau of Statistics to say that the country was “at risk of a global chicken boom”.

The biz’s latest data on the price of chicken, meat, and eggs, released last week, showed that the Australian dollar has risen against the US dollar, meaning Australian chicken and beef is now worth a little more than US$1.35 a kilogram.

“The global chicken price is currently about $US1.20 a kilo, but chicken prices have increased by about 40 per cent since the end of 2016,” the ABS said.

“The chicken price increase is largely driven by price increases in China and South America.”

Chicken prices have continued to climb, but the ABS data also showed that Australian chicken was still cheaper than US chicken.

“We expect Australian chicken prices to remain relatively flat, which could have a significant impact on the market over the coming year,” the report said.

“It is anticipated that the price will not significantly change as the US economy stabilises.”

Australia’s chicken boom has helped fuel an upsurge in foreign investment and jobs, and the country has seen its GDP growth come in at about 2.5 per cent a year.

While chicken consumption has remained stable over the past two years, the country’s beef exports have been increasing.

Beef has helped support the country in the past few years, particularly after Australia imported about a quarter of its beef from South America, the report noted.

It said the number of beef producers in Australia had more than doubled to 521 in 2015-16 from 193 in 2014-15.

Australia’s beef export earnings grew by about 6 per cent in 2015 and 2016, and are expected to grow by about 15 per cent annually from 2021-22, according to the report.

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