Shares of America chicken processors surged Monday after China said it’s prepared to lift a ban on U.S. poultry that’s been in place since 2015, according to a story in Bloomberg News.
Tyson Foods Inc., Pilgrim’s Pride Corp. and Sanderson Farms Inc. are all poised to benefit as China may seek to import more protein in the wake of a deadly pig disease that’s wiped out a significant percentage of its hog herd, according to the story.
Chicken is the cheapest substitute for pork, which is the country’s preferred protein.
Sanderson Farms shares gained as much as 16%, the biggest intraday jump in more than a decade, while Pilgrim’s Pride and Tyson rose as much as 8.3% and 5.1%, respectively.
African swine fever is spreading through Asia and may cut Chinese production by 60% by the end of this year, according to researcher Global AgriTrends. China produces and consumes about half of the world’s pork, and the damage from the fever is widely expected to create a protein gap that suppliers won’t be able to fill. Pork costs have skyrocketed in the country.