Pilgrim's sees second half of 2026 more favorable for chicken in the US

Pilgrim's Pride Corporation, controlled by JBS, projects an improvement in the chicken meat market in the United States in the second half of 2026. After a start to the year marked by excess supply and pressure on prices, the company is betting on a better balance between supply and demand to sustain the recovery of the sector's margins.

Pilgrim's highlights that the recovery of the chicken market in the second half of the year should be driven, in large part, by consumption in restaurants and contribute to the reduction of supply in the market.

According to analysis by BMO Capital Markets, the industry began 2026 with production growth close to 4%, a pace higher than the increase in consumption. The mismatch put pressure on protein prices for American industries.

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Data from the USDA (United States Department of Agriculture) show that the increase in the supply of chicken meat this year was driven by the expansion of housing and slaughter volume. Among the products most affected by excess supply were chicken breasts and wings, which performed below market expectations.

The company will increase investments in ready-to-eat foods and fully cooked products, segments that offer greater added value.

The company works with the goal of capturing around US$200 million per year in operating gains. Key projects include the new prepared foods facility in Georgia, which will support the expansion of the Just Bare brand. In just three years, the brand's market share increased from 1% to 13%.

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The strategy also includes doubling production capacity for fully cooked foods in Mexico and expanding the supply of higher value-added products in the United Kingdom.

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Source: CNN