Why Is Costco Opening Its Own Chicken Farm?
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- Опубликовано: 6 июн 2024
- In fall 2019, Costco will open a chicken farming operation in eastern Nebraska. This venture will provide Costco with 100 million chickens, or 40 percent of its yearly chicken needs, allowing it to partially escape the American chicken oligopoly run by the likes of Tyson, Pilgrim's Pride and Perdue.
One of the brand's iconic products is the Costco rotisserie chicken. Costco sells about 60 million of them every year, but they're a loss leader. Costco sells these chickens at a loss sometimes up to 30 to 40 million dollars per year. The chickens are a lure to get customers in the door. They're placed strategically at the back of every Costco so customers might pick up other items along the way.
That's why Costco wants to keep the price so low.
The trouble is that chicken prices have crept up over the last 10 years and the industry is practically an oligopoly run by the likes of Tyson and Perdue. Costco like most American Grocers buys from these behemoth companies because there's no other option. But not anymore. In 2016 Costco announced its plans to open a chicken farming operation in eastern Nebraska. It will own the whole supply chain from baby chicks to feed to the final product. This operation will provide Costco with 40 percent of its yearly chicken needs about 100 million chickens.
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Why Is Costco Opening Its Own Chicken Farm?
I used to work for Costco at $25 per Hour. Ive moved on to better things but they were the best retail job i ever had.
It,s all about the squiggly !
How long were you there and what did you start out at?. I'm thinking you worked nights
$25 PER HOUR? DANNGGGG
@F. A.
what’s ur job now?
@F. A.
Wow, makes sense. I believed it so blindly…
"The biggest companies illegally conspire to fix prices"
A chicken cartel??
it really is when you look into it. the mafia used to have a big part in the chicken market too
The issue could be fixed by regulation in a second.
Or the smaller farms could start selling at 30% of the vertically integrated farms, but they can only sustain that on a local scale.
It has been like that for a very long time. Can’t beat them on lawsuits much since they have the money for better lawyers, bribery, and political connections.
You mean it’s all chickens?
Always has been
Yes there is also an Italian chicken monopoly, its called "chicken carteltori"
costco really is one of the few businesses with integrity
Don't let the corporation fool you.
KELLI2L2 throwing the chicks is actually a good thing. if they just gently dump them in a pile, the lower ones suffocate. by throwing them slightly, it spreads them out.
theifofmemes no corporation has “integrity”
I wish costco sold tegrity
Tegridy weed is company with a very high degree of integrity
IKEA sells chickens you have to assemble at home, lol
I am Groot, You win the funniest comment prize!
They also sell horse meat
an egg?
😂😂
Last time I bought an IKEA chicken kit, it was missing a leg.
I'd pay $6 for a rotisserie chicken if it meant the farmers made out better. God bless all of our farmers. I thank them every time I eat.
The 5 dollars is already Costco selling at a loss. 6 dollars would barely break even.
im sure, knowing costco as a company, they are NOT screwing over the farmers, they are getting paid well for sure
Not everyone is making a lot of money to give businesses more money
It's costs more than $6 to raise a chicken, even in a factory farm. The average cost is $5 lb. Free ranged non-certified organic from a small holding or homestead will run 15-20 dollars or more and may likely be the best chicken you ever tasted... possibly making you wonder what you've been buying in the grocery stores they call 'chicken'.
Try more like 10
It works though. Every time I decide to get a chicken from them for dinner, I come out of the store with a bunch of other crap lol. :/
LAWL that's like me going into Target.
@@kgal1298 Well, Costco is doing great things by providing good quality wine and chicken in a good price while Target is simply using their strong marketing campaign to sell way too expensive stuff.
yeah blame the store, not your guy's lack of self control
Same here fam.
I used to work at Costco. They do a few things aside from placement as well. Larger baskets make you want to fill it out. They move items every week so you can’t easily get in and get out with only what you wanted, but have to wander and stay longer. Sale and popular items are place at the far end of the aisle in view of the main path, making you walk down the entire aisle to get to it. And a lot of their items are for a limited time/supply or seasonal, making you feel like you have to get it now or they might not have it next time you go in.
It’s not a black and white no self control or store marketing. As always it’s a mix. Self control isn’t a have it or don’t, it’s a spectrum. Do the better the stores marketing and tricks, the more self control you’ll need.
That vertical integration model is actually a nightmare. I applaud Costco for breaking away from Tyson, however having farmers own all the expensive equipment, but not the chickens, is essentially replicating the horrible business practices of Tyson.
Bingo! Corporate owns all the assets, while the farmer owns all the liabilities.
Well, I guess if you consider "breaking away from Tyson" just becoming another Tyson, then by all means, applaud away.
@@AbsentWithoutLeaving Read the first comment again. "I applaud Costco for breaking away from Tyson, however having farmers own all the expensive equipment, but not the chickens, is essentially replicating the horrible business practices of Tyson." You're saying the same thing.
@@deus_ex_machina_ Perhaps farmers like this arrangement, otherwise they wouldn't be doing it. They like having the guarantee that their product will be sold. Try going solo in this day and age and you will soon discover that without a good distribution network, your chickens will be rotting carcasses on the trash heap. Who are you to say that it's bad. You're probably just some random person who knows nothing about this business, commenting like you do know everything about this business. RUclips comments are filled with armchair experts such as yourself.
@@tinytownsoftware7989 I didn't claim to know the intricacies of running a large farming operation, just pointed out who has the leverage in the arrangement.
Also farmers may not like it, but feel it's their least bad option, a 'lesser of two evils' situation.
If you cant have free range chickens I suggest CHICKEN VR goggles that create the illusion of free range
That’s so dumb but I can’t stop laughing
I would pay for that.Chickens wearing vr helmets.
Did you see robot chicken?
Aint nobody got time for dat.
@@5easy it broke my belly.....
Glad im VEGAN.
Vertically integrated agriculture isn't a farming method, it's a business method. It only indicates the ownership, not HOW the chickens are actually farmed. It's this kind of inattention to definition that makes me not watch videos from a channel
James Evans cheers!
Oh no! Please watch !?
Everyone complaining about how Costco should make their chicken oragnic free range probably don't even buy organic free range and just buy what's cheapest.... You know, because you go to whole foods for organic food. You go to Costco to save money...
That's not actually true. I don't buy from most chicken companies, that's tyson, foster farms, butter ball, etc. I buy locally, I research the farm and the practices. I would hope a big chain like Costco would try more ethical and environmentally friendly chicken processing.
@@JeanPKlaus Its great that you care about animal welfare, I just don't think people who shop at Costco are there for animal welfare or organic foods. They're only there to save money, otherwise they'd probably be shopping at Whole Foods instead
@Carlos Spicy Weiner yup
@@Ruffles2012 I'm not from US but is there a significant difference in price between Costco's chicken and others?
@@gohan12991 Yes. I prefer Whole Foods which is twice as much, $10 for full organic, free-range, and free of antibiotics, steroids, & growth hormones.
I’d be willing to pay a little more than 5 dollars a chicken if it meant better practices
You are willing because you can afford. Some families can't. Or dare I say, most.
Like veganism? Sure.
@@Remyueru people pay 60$ annually to get a Costco membership, they can afford to buy chickens at higher prices.
People who can't afford it, don't even shop at Costco.
@@purr-maw-ee that doesn't make sense. Yes people that pay membership fees can afford higher price chicken, but they go to Costco because it's cheaper by the volume. If Costco raise prices then the consumers will simply find a better offer from competitors. It's the consumers who move the market not the vendors.
@@Remyueru even if they raise up to like $6 it would still be the cheapest chicken in my town lol
Chick-fil-A is also going to break away from these chicken companies.
Elon Musk is bringing rabbit online.
I worked for an "organic, free range chicken" producer. The feed was not organic and there was no free range. To get the job I had to sign non-disclosure agreements and NEVER speak to the press. There were 2 employees to raise 500, 000 chickens. From hatching to slaughter it was 42 days. Those chickens in Costco are perhaps 35 days and are quite small compared to those of 42 days.
The farmer himself is a serf to the mega chicken slaughter house. With 9 batches or 4.5 million chickens a year and 2 employees, he was earning $18,000 a year. I was earning double what the owner was earning.
Sooner or later the farmers go bankrupt and the mega slaughter house buys the farm pennies on the dollar and mysteriously turns a good profit.
The mega slaughterhouse treated us and the farmer like trash. Most everybody hated their jobs and high turnover is considered normal.
Very few outside of agriculture understand that the industry of agriculture is hopelessly corrupt. In ag universities we are taught about soils, chemicals, bugs, parasites, Irrigation engineering, mechanics and marketing, but not a word, not a peep regarding the food cartel and the corruption that has been eroding the family farmer away for the last 2 generations. This is why few children of farmers, choose to stay in farming. The food cartel is a problem far worse than plagues of locusts or droughts.
Unless Costco has their own feed producers and feed mills, the food cartel will break them sooner or later. They could possibly stop selling Costco other commodities to force them to kneel.
@The United States of America Yep, that's why he went bankrupt.
yes at 1:36 she said Costco will own the chickens, the feed and processing plant.
Costco knows the corruption behind its competitors
All they need to do is cover the ag-related trade wars with the EEC/EU from the 60s to the 00s at ag universities. That will tell you pretty much everything you need to know. It's insane
That's one reason I'm a vegan
What a sad story you just told us, but thank you for sharing.
Costco is what capitalism and corporations were meant to be
I think you mean corporatism which is the opposite of capitalism.
capitalism would be where the buyer doesn't directly control the seller.
I’m a socialist but I actually like what I hear about what Cosco is doing here, good job Cosco.
Also corporatism is just a variation of capitalism which is any system where the means of production are privately owned. All socioeconomic models have their flaws but at least be honest about it.
@@conrad1755 said, "corporatism is just a variation of capitalism"
They're the antithesis of one another. Corporatism the system works like a oligarchical system or a top down system. Capitalism is by definition a bottom up system where the individual producer has the most influence.
said, "I’m a socialist"
Every system has their problems.
capitalist worst case it can easily fall into a corporatist system.
Socialism worst case is what to do with those that doesn't fit into the system.
So I ask you. What do you do with them? Marx and Engels answered that question and I know very few people that are aware of their answer.
'I think you mean corporatism which is the opposite of capitalism.
capitalism would be where the buyer doesn't directly control the seller.'
This makes no sense lol. They're a publicly traded company - yes. But they're supplying goods to meet the demands of the market in a proper manner - and they're breaking up an oligopoly in order to keep prices low for their customers.
So what you're suggesting is that what they're doing is in opposition to Capitalism? So you're suggesting that Capitalism is market oligopoly?
Amazing what Capitalists will admit.
@mausalus09 Socialism doesn't mean planned economy my dude. I get it though, most uneducated people have no idea what market Socialism is - or even parecon for that matter.
Socialism is about workers directly controlling their workplace. Maybe you're confusing it with (attempts at) Communism?
Costco is great, it allowed me to take my family a vacation to LEgoland with a discount price :)
Whatever your priority is, there's a market for that;)
Wow Costco pays 3 chickens a hour😁
Wrel Rel, Another funny. Second prize to you!
Come on Costco, this the perfect opportunity to do the right thing! Raise those chickens ethically and clean! Do it!!!
Diallo Kreed it’s what I was expecting when I clicked this video....
There's no such thing as ethically raised animals for human consumption...
The video mentions using local farmers so I'm sure they'll have ethical requirements from Costco
@@landry2611 hope so
"Ethical" chicken means higher cost which means more losses unless they sell their chickens more expensively which defeats the purpose of the $5 rotisserie. It's going to be about reaching a compromise.
Costco has a good name when it comes to how they treat their employees
1:35 this process exploits the family farmer.
“You own everything that costs money, we own everything that makes money”
- john oliver on chicken farming
Yep! Good video
Yep. As they point out here, it's just another form of sharecropping.
Gob: "monopolies are illegal"
Rich people: "let us introduce ourselves and our green friends"
U mean hulk?
Atleast Costco is trying to make things little bit better not the best but step in the right direction.
Watch one of the CBC videos regarding their demand of rebates on generic drugs and see if you're still saying that.
They're just trying to limit their losses. Chicken is monstrously cheap compared to any era more than a couple of decades ago.
Not for much longer if they keep fixing prices.
It's really not improvement, though. It's a large corporation saying, "We sell chicken and we're sick of dealing with the chicken monopoly, so we're going to copy their model and do it ourselves instead."
@ David @ Dmn As we all know, all of the businesses are there to make profit , even a Mom and PoP shops. The bigger picture is that there is a demand for the chicken , Costco consumer could end up having more influence at Costco, conscious Costco customer can later demand for ethical treatment of not only chickens but of Farmers as well. I am a vegetarian , myself but I can not expect everyone to become vegetarian , that will be the ideal but reality is working with the system ,only can slow and steadily can improve the system rather than radical change, which millions of people will not be ready for. We still have a choice directly buy from the farmers, those who raise chickens locally . If people are not willing to do that , then at least can help big companies to become more ethical and let them know as customers what we are looking for, as I said This is the not the best but still could be improved .
50 Cal that’s a good point about Costco shoppers being able to wield considerably more influence over Costco than they could “Big Chicken”, but at the end of the day I think the typical Costco shopper would care less about the ethical treatment of the chickens than they do paying the lowest possible price. Americans like their meat to be cheap, and Costco likes using chicken as a loss leader to draw in shoppers, so they’re going to go for the method of production that cuts their costs as much as possible.
I thought this was suppose to be only 13 seconds long
Jebaited
Likewise...hmm?
yeah same here
Same
Yeah sus up with that
I want 5 dollar chicken. Take care of Nebraska’s ecosystems and be fair to the workers but make it happen Costco!
Steven Abbott that’s the big thing, industrial farming can have massive repercussions on the ecosystem and the people who live around it. I hope Costco can make it happen
You want poor people to pay 15$ for chicken , the ones that could barley eat . Because you could afford more ..
You cant have it all
It reminds me of a well known chicken chain Los pollos hermanos
“Prep the birds for sale” lol we know what that means
02:07 Vegan nightmare
Lol dude you have no idea the videos most vegans have seen, try see a pregnant cow get her throat slit then her pregnant baby cut out and then killed for its "soft luxury" leather.
99% of people would go vegan except for the psychopaths if they watched what happens in slaughterhouses and saw the reality of animal agriculture.
Watch dominion and/or earthlings. Both documentaries exposing it.
Actually most vegans are cool with it. It's mostly a lifestyle choice rather than a moral one.
@@JordanHesse I watched something like that that scared me into veganism, but i went back to being omnivore again.
The realities of life are a vegan's nightmare. More death is caused by large scale agriculture of for human consumption crops than feed for the chickens and the chickens themselves. They just love to ignore what pesticides do or how many animals get killed during harvest season for being in front of a harvester.
A reminder that animal agriculture accounts for the vast majority of anti biotic consumption, and is the leading cause of global antibiotic resistance
But plant-based diets aren't as effective at resolving insulin resistance.
Poor chickens.. To live a 45 day sad life to be sold for $5.
I feel so bad when the fluffy little baby chickens just get yeeted it’s so sad they should at least get to live in grass not concrete floors
@@jolie7090 they are just chicken with a micro brain, they don't know better. It is fine
They're tasty 😋
@@jolie7090 Chickens aren’t smart they don’t have feelings, so stop sympathizing with them. If we did this crows it would be different.
@@KRYMauL Look at another create without brains, it's Kevin!!!
As a longtime fan of Costco, I hope they do this ethically. They've always been a socially responsible company, which is why I shop there, but this venture could go south real fast. It's hard to see any feasible way to ethically produce the amount of chicken Americans consume.
I'd love if Costco started serving freshly fried chicken too
Frying chickens is a lot more expensive and produces a lot of waste oil. Plus the fat from the skin on the chicken leaches into the oil, it tastes good but it's not good for you. TheReaper!
We do
Never been to Costco, but here in the Philippines we have S&R (run by a retired Costco exec) and they have pretty good fried chicken. Their pizza & burgers are the same as in the US. We can buy rotisserie chicken pretty much everywhere - for $3.50 each.
They do in Canada
E Rogers Wow really? How much does it cost?
I love all the Keto stuff Costco has now. Its fantastic. They really are more good than anyone else right now.
I worked at Costco and skewered and cooked chickens all day and I gotta say it was hard work, although I wouldn’t eat the chicken I’ve made hundreds of times but I can assure you they are very strict when it comes to keeping them clean and safe.
This was actually a well thought out and engaging video. I am surprised. Good job CNBC 👍
I agree. I was expecting the worst. Vertically integrated chicken farm planned by Costco should be better for anyone than those ran by the current chicken cartel. As I commenting in 2021 I want to know has Costco succeeded.
I found it. It has been running and brought financial benefit to the community.
ruclips.net/video/TYzsT2SIONM/видео.html&ab_channel=KMTV3NewsNow
I appreciate the in-depth coverage that also points out that while Costco may me doing some things right, there are some flaws to their plan. Would have been nice to hear more from the group at the end that opposes Costco's plan and vertical integration agriculture to better understand their reasoning and thoughts.
God, you guys are on point. Keep up the good interesting work
In Central America, some years ago, Walmart managed their own farms + cattle and slaughterhouses, not sure if they were looking to integrate their supply chain (beef), or they ended up in that situation after buying out a couple of major local retailers.
I’m not some Whole Food hipster but I’ll admit factory farming (at least in its current state) is evil, hopefully Costco will truly care for the well being of the farmers and workers, environment, and chickens too
Louis Zhang they wont
I prefer a mass-produced, cheaper chicken, thank you very much. Main reason: I am broke, but I love to eat.
only if the charge a premium price, otherwise isn't viable to take all this into consideration.
they're already selling at a loss without caring about this, so, if they also take into account their loss will be even bigger.
Costco is one of those evil, you better to wake up
Can't make change without voting!
Was in Costco The roasted Chichen ran out, must have been 50 people waiting in line 🍗.....LOL
Surprised 50 people couldn't catch one chicken
@@C0C0_Nuts lmao. That's how i read it as well.
I have never shopped at Costco but I'm going to start now.
Seriously? Costco eliminating the evil middle-men of Tyson and Perdue and the like, so that THEY can become Tyson and Perdue and the like? I think you need to watch this again.
Great report. Happy to see on CNBC.
Finally explained! I could never understand how a whole cooked Costco chicken was $5.00 and a whole raw Perdue same size was $8.00+. Great bargain.... I pick one up every time I’m at the store.
Mmm... heading to Costco now for a chicken. Dinner tonight, chicken salad tomorrow, and soup this weekend...
And the GI doctor next year
And lots of stress hormones, fake 'plumping' hormones, sub-therapeutic levels of antibiotics and God knows what kinds of resistant microorganisms seasoning it all. Yum!
5 dollar chicken is cheap? I must've been a cheap ass my whole life then since that's how much they've always cost around me
I sell my chicken cheap at 3$/lb , usually weighing in at 5-8 lbs. so 14-24$ for a whole chicken. 5$ (I’m guessing that’s USD) so probably 10$ American, is quite cheap for chicken. But look at the way they’re raised, terrifying
You can buy 6 chicks from tractor supply or rural king for $6
Sounds like they didn’t have enough space, feed etc , glad to hear you’d support the small farmer!
That being said very minor bruising and such isn’t a huge deal, severe is different. Same as a blemished apple or tomato isn’t a big deal but the farmers eat the unsightly ones!
With 5$ you can't even buy the food to grow a chicken
@@sarapaolollo8634 free range you can. A chicken will find the proteins and food it needs of given the chance
Interesting video. Thumbs up from all the hens in Rep Ireland 👍 🇮🇪
Why are Irish so patriotic lol
Good for Costco,the chinese already bought the biggest pork prosscesing plant in the US, "Smithfield",we need to prevent more chinese takeover of the US food chain
Pale Feather Valdez the Chinese is definetly not regulating how we handle pork lol
@@palefeathervaldez3563 the plant is still in the U.S. therefore it still has to comply with U.S. regulations. It just means that the profits go to China
How true!
I crossed Smithfield off my list...
The Japanese tried this before WW2...
They bought up orchards and farms in California and shipped all the produce to Japan...
They wouldn't do business with Americans...they were colonizing US farms...
This is one reason why Franklin Roosevelt put them behind barbed wire...they had proved their loyalty was to their homeland...
Smith field is a disgusting company I’ve seen how they treat there pigs and workers
My buddy worked for smithfield and before he quit when they sold out he "accidently" broke this gigantic machine that he operated. The entire production stopped for half the day.
Do *_NOT_* insult my Costco.
Disneyland < Costco
Imo😭😁😄
Why is Costco opening its own chicken farm?
lol
What happens to 10 million chicken heads and 10 thousand tons of feathers? Do they grind them up an feed them to the pigs?
r/hailcorporate
Costco is a great company to work for. It provided me my first house and brand new car along with motorcycles etc. And I live in California. Yeah you have to work hard but the pay is very good. As for the chickens it makes more sense to raise your own as the company sells tons and tons of chicken. Even the organic chicken sells out often. Great move for Costco. I suppose foster farms wont be very happy.
Perdue: "Just give up on people after they fail once. It's how we treat our own employees anyways!"
Too much politics made me think that this was Sen. Perdue
"Prep the birds for sale"? 🤣
Legit tho if I ever started working at a chicken farm I would grab a bunch of chicks everyday and hide them in my house xD
-What are you eating?
-Costco material
We use to keep chickens for eggs but they were pets first. It hurt my heart to see them casually tossing baby chicks and seeing how sad those chickens looks cramped up with nobody to give them hugs. I miss hugging my baby chickens.
VictorianRabbit3456 I’m all chocked up.
Chicken as a lure😂
There is no chance that a 5 dollar chicken is humanly raised.
Literally the first minute of the video talks about how Costco sells chickens at a loss
did you mishear? it's clearly NOT a "$5 chicken" they sell at a loss at that price.
@@Eexpers So you want me to think that because they are loosing money on the chickens they take BETTER care of them. LOL
@@kirkjohnson9353 did I say that? YOU ruled out the likelihood a $5 chicken being raised humanly - I'm pointing out that it's NOT a $5 chicken thus the possibility of them being raised humanly should still be open.
@@Eexpers Ok, so you are saying that because they are losing money on the chicken there is a better chance they are raised humanly - still nuts fella. LOL
Proud to be a member of COSTCO.
The Hound would love this video
Best roasted chicken you can buy off the shelf
Nobody:
Chicken farm employee chucking handfuls of baby chicks.
Watch the videos on YT of goslings and ducklings jumping out of elevated nesting sites 35/50+ feet above the ground, doing a bounce and getting up to follow mom to the nearest lake, no problem. Chicks are so light and fluffy a six inch drop isn't a big thing for them.
since this was made several years ago, anyone have an updated link to any report on how well or how bad they are doing now at end of 2019/beginning of 2020?
From what I've read they had to jump through some legal hoops, but the farmers here are building the farms or they are completed from what I've heard from the locals. From a medical perspective, a friend in the industry said we already rank 7th in pediatric cancer. Which could be from agricultural runoff. I hope Costco is considering the environment because i do like them as a business but I'm not a fan of the factory farming. So far I've heard good things from the farmers.
In my country average cost of chicken meat ranges from 1.5USD to 2.5 USD /KG ,but it's highly variable according to demand and supply.
I work at a beef packing plant for Costco the one in Illinois not California and we all make 15 and hour too
Guys I have farm chickens for 16 years and don't be fooled. The reason they can produce cheap chickens is that they pay the farmer little to no money to do it . Let Costco own the farm and grow the chicken and see what happens to the price. This is the new face of slavery
Go Costco, I will be proud to shop there tomorrow haha
Love the vertical integration Costco
This sounds like a fowl idea....
Good one
Hahahaha! gimme a high five bro
Here's a feather for your cap.
Eggs-cellent!
You're so Cocky about your jokes huh??😂😂
Brawndo's got what Chickens crave.
I'm just curious, in the 1990's Hormel was paying more where ? What state?
Hormel just happens to be in the same Nebraska town as Costco is moving to. Fremont, Nebraska. Hormel has been in Fremont since the late 40's or early 50's
In fact, it's where they make and pack SPAM. They make SPAM in only two locations in the United States: Fremont, Nebraska and Austin, Minnesota.
Most balanced reporting ever!
Wow, I had no idea that chicken meat was so much in demand!!!!
you think? and Assuming you're American Probably driving passed KFC, Chick Fil A and Popeyes
As a small scale Chicken Farmer we are going to fight these large Corporations and bring our food raising back to our regions.
more people should see this, and we need more "real, goog quality news" like this! this is what news report supposed to be
That graph is from the National Chicken Council. The NCC's page currently has a chart of the broiler prices, which matches the graph in this video. But underneath it says "Wholesale and retail broiler price are composite prices of parts from 1990 forward." No idea what it means. But I've been buying raw chicken in stores for about 7 years, and I've always been able to find $2.00/pound. Chicken prices have been stable for a while.
Even if Costco's farming practices end up barely different from Tysons etc, the move will still increase competition. Costco sells cheaper chickens. It'll force others to bring their price down now that they aren't the only suppliers. As the video mentioned, it seems like the other companies are colluding to artificially inflate prices
At 2:20 "the meat would be tough and unpalatable" that's why older ones i talk to complain about how chicken meat had a nice texture and is too mushy nowadays.
how is that vertically integrated if they're contracting the raising and barns to independent farmers?
I like that all the chickens I saw still had their beaks.
6:55 nice tractor stock footage from Germany 👌
And, just why do you keep mentioning Perdue when it's #4 even by the pie chart you show??
Tyson took over alot of their business.
I’m confused. I get $5 cooked rotisserie chicken from Walmart all the time, some times they go on sale for $2.5. Is Walmart selling them on a loss too???
2.50 doesnt even cover the cost of feed to raise a chicken up to market weight. Of course they are selling at a loss. It's called a Loss leader. It's just to get you in the store to buy other stuff
@@kmac6399 Loss leader lol such a great name lmfao, ig I'll buy more of these type of chicken next time knowing they are such a good deal!
Btw, can you explain to me if it is sold at loss, why doesn't costco just buy a bunch of roast chicken from walmart then sell them as such? First, they no longer lose money, they just dont make any. Second, walmart now loses money, which is good for costco as well!
31k USD for packing chickens :o.... in the UK you'd be lucky to get 20k USD!!
That is good model of business, as long as Farmers make profit instead living on the edge..
Yep you can buy a 5 dollar roasted chicken in my 3rd world southeast asian country. And it's a whole roasted chicken! They also come with free gravy!
Same method Magnolia does business in the Philippines. Company provides chicks, feed and vets, and in the end, the same company buys it back. Minus feed and vet cost. But..they can only sell them to the same company.
So, it's February 10, 2020. What's the status of Costco's chicken "farms" in Nebraska?
5:28 broke my heart 💔
Me too... 🥺🥺🥺
Absolutely sickening!!!! I despise human beings!
Welcome to human civilization.
$6 Chickens at Costco would still sell exactly the same
Nah, it'd be a huge kerfuffle.
Plus from a psychological standpoint $5 is mentally more appealing. Aside from actually being cheaper.
@@justifano7046 Then why are membership prices still rising despite to price increases from $50, to $55, to $60.
Is there a follow-up video?
I would love to eat one of these right when it is finished
Feel sorry for chickens what a sad existence
Kekistani Refugee there is nothing worse than being a loser 4chan Incel like yourself
Feel sorry? No, that's a good deal. You can't go wrong with buying rotisserie chicken for $5. And it's yummy too. The meat is moist and seasoned to perfection.
We raise our own chickens for the eggs. We take good care of them and let them free range every day. It's natural to want to anthropomorphize them, but believe me when I say that chickens are some of the STUPIDEST animals that have ever lived. Chickens on factory farms aren't depressed and have no comprehension of their "sad existence." All they care about is eating, and aren't the least bit bothered by their surroundings.
@@ADHD55 the solution to your problem is for you to quit eating any foul based product. I think you'll find that a LOT harder than it sounds.
@@ABQSentinel believe me, those conditions created the H7N9 outbreak back in 2013.
As a chicken farmer. This is how all large producers work Costco not doing anything original:(
We have family farm
scott winiger sorry but family farms are not going to be enough for feed everyone. At some point family farms are going away and replaced by large, highly regulated corporations
Go organic and make good Advertisment in social Media. sure people are buying ur product, if they know where its from, know the chicken got treated good and is not overloaded with Antibiotics. Sell ur chicken direct to organic supermarket. But u have to go organic, if u want to run a family farm. Put ur Adresse and Website on ur product, so people can visit ur farm. Some people would like to give the farmer more money, than the Big Coperation.
Sam's Club sells $5 rotisserie chicken too! Never knew it's a loss-making deal for them.
There is a chicken factory in my town, and there's literly a big field right next to the factory. The field has been empty for YEARS, and yet those chickens still suffer inside those "farms".
$5?!? Where?! My local Costco sells them for $8 lol
Canada?
This video is 3 years old (2 years old when you posted your comment). Time marches on. And so does inflation.
Why does it concern me that small businesses are dying and big businesses are forming monopolies? (Like Unilever)
Economies of scale comes with its cons.
I just ate one of these and had a stomach ache for 3 days. Literally the ONLY Costco product I’ll never buy again. I love Costco.
They did the same thing in Texas with the egg market! Shut down many farm
Forced them into bankruptcy!
Is there a follow up to this story?
I have been a Costco customer since approx. 1986. They have always been MORE THAN FAIR in our dealings. I have friends/relative working for Costco and they are treated very well, they tell me. I have observed Costco to be very "environmentally friendly " and fair to their suppliers. I TRUST Costco to do the right thing, in this venture.
Really I always felt theyre just as expensive as going to like walmart or vons. Plus you gotta pay 100 bucks a year which is where they get their profits from.
@@805fillmore
Costco is actually fair to their suppliers and employees. Wal-Mart, not so much.
Costco Food court is A+
@@805fillmore eh, to each their own. I have found great items in BULK for a great price at Costco. I get my keurig cups $30 bucks for 100, the closest I've seen was $20 for 40 at Walmart and it's not as tasty. And the ones at Walmart are not biodegradable.
@@terriesmith8219 Walmart also sells an inferior product. Next time you buy hanes underwear buy another pack from another retailer. You see and feel the lack of quality in walmart's. They force these companies to downgrade to keep the price low and it shows.
Excellent article!
I’m having Peruvian 🇵🇪 chicken 🍗 tomorrow for New Year’s Eve. Delish 😋.