Chicken Companies Wait In Vain For Industry Cutbacks

Hurt by soaring feed costs and lackluster demand, chicken companies think cutting back production to stave off a glut is a great idea—as long as it is their competitors doing the cutting.

None of the large producers—including Sanderson Farms Inc., Tyson Foods Inc. and Pilgrim's Pride Corp.—wants to be the first to cut back. So supplies stay stubbornly high, prolonging a down cycle that threatens to hit earnings this year.

Analysts have been warning of oversupply since last fall, and yet eggs set in incubators, a sign of future chicken supply, have only recently started to level off.

To read the rest of the story, please go to: The Wall Street Journal