The recent “Chicken Sandwich Wars” have shone a spotlight on broiler chickens - one of the most popular and least expensive sources of protein to produce. It has also left chicken buyers wondering how they can make more informed medium and long-term chicken sourcing decisions.
To address chicken buyers’ needs, Gro, an agriculture analytics specialist with an immense amount of data available on corn and soy (the two feeds used to raise a chicken), has launched the Gro Broiler Chicken Margin Monitor (BCMM), a first-of-its-kind broiler protein margin monitor application that provides chicken buyers with a comprehensive view of the profitability of chicken in the US.
The BCMM also provides data on prices and production margin estimates, as well as a visualization of ten years of historical data and national average prices.
Access to production margins for chicken meat gives chicken buyers insight into the direction and level of profitability for chicken-processing companies. Recognizing that price, among other factors, drives supply with BCMM data, procurement officers, traders, analysts, and investors can make quantitative assessments of the medium to long-term broiler supply changes that affect prices.
Without broiler margins data, industry professionals have to base their broiler price predictions on internally-collected data, sometimes without a complete picture of broiler chicken price drivers.
Gro’s Broiler Chicken Margin Monitor offers clear advantages over past practice: The BCMM can save users from having to manually compile, structure, and analyze reams of data. Each day the BCMM gathers and maintains data on chicken producer profitability to produce daily pricing and production margin estimates for broiler chickens produced in the US. It can also provide directional insights based on pricing and supply. The BCMM does this by calculating costs of corn and soybean meal of front-month futures prices.
Gro users can access the BCMM on a individual subscription basis using our newest data sharing tool via Microsoft’s Excel Add-in. If you would like to learn more about the BCMM and how it can inform your company’s future chicken sourcing decision-making processes, please reach out to schedule a demo. Gro’s sales team can be reached at firstname.lastname@example.org.