Organic feed prices remain elevated. Despite the 50% decline in organic soybean meal from $1,700 per short ton, the protein only makes up 20% of the feed ratio. Prices have remained elevated depending on the energy source (either corn or wheat in most cases). In the case of organic corn, prices have declined 16% since the highs seen in June 2022 and remain well off the lows seen in October 2020 when organic corn prices in the Midwest were closer to $6 per bushel.

The upshot is that consumers are still willing to pay a premium for organic animal proteins. According to the Agricultural Marketing Service, organic whole fryer prices (12-week moving average) are near the highest levels in the past three years. Organic whole fryer prices are up 10% year over year for June, closing in on the highest levels seen in July 2022.

Strong Jobs Data Buoys Organic Spending

Consumers are willing to pay elevated prices for…