The situation in the US poultry and meat supply chains has not significantly improved, and the statistics are not pretty. The Washington Post reported that 11K cases have been tied to three major meat processors. There is a challenge to the process of reopening as the standard working environment is vulnerable to the spread of COVID-19.

Last month President Trump issued an executive order designating slaughterhouses as critical infrastructure and most remain open. The order did not address testing. Testing at slaughterhouses and meatpacking plants has not accelerated, but that has not stopped plants from reopening. The New York Times is quoted as saying that companies are not reporting cases to avoid being painted in a bad light.

Demand for Chicken and Meat has not Declined.

The slaughter numbers which initially dipped in early April have rebounded sharply. Demand for meat has not slowed down. The Jacobsen has increased its expectations for year over year organic chicken retail sales demand, following an update on organic chicken retail sales into the last week of May.

The Jacobsen now sees organic chicken sales rising 8% year over year for the 2019/2020 season. Organic retail chicken sales have now surpassed the levels seen in January ahead of the shelter in place orders that closed the economies of most states. The trend in organic chicken retail sales remain upward sloping. The trend, has increased approximately 38% over the past 3-years according to The Jacobsen.

In addition, plant-based meat sales have surged higher in the first 5-weeks of the Q2. This information was confirmed by Beyond Meat which reported record revenues in the Q1 of 2020.