Costco’s $4.99 chickens have a cult-like following among shoppers in the US. The retail giant is opening its own poultry facility in Nebraska to keep prices low and maintain control over the production process. However, this move has faced criticism for its potential impact on farmers and the environment.
Changes in the Wholesale Chicken Market
A shift in consumer preferences towards chicken pieces has posed challenges for Costco in sourcing the right size birds. By bringing production in-house, they can now control the size and supply of their chickens.
Costco Coming Under Fire
Critics argue that Costco’s Nebraska facility contributes to degenerative farming practices, which can be harmful to farmers and the environment. Contract farming agreements with farmers have raised concerns about risk and control.
The Environmental Impact
CAFOs like Costco’s poultry facility in Nebraska have negative effects on soil, water, and air quality. The excessive waste generated by these operations poses a threat to local water sources and wildlife.
Costco Pushing Ahead
Despite criticism, Costco is moving forward with its poultry production plans in Nebraska. The company believes its contracts with farmers are low-risk and that their poultry business will continue to thrive.