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Investors urged to consider the humble chicken

Business Materials 3 June 2008 07:56 (UTC +04:00)

( dpa ) - The rocketing cost of food is providing an opportunity for investors to focus on the humble chicken, a Morgan Stanley report said Tuesday.

With grain prices soaring, beef and pork will increasingly become more costly compared to companies dealing with chicken processing, said the investment bank.

Producing a kilogram of chicken requires less grain than producing the same amount of beef, the report said. Chicken hatcheries also cause less pollution than cattle or pig farms.

Other firms in the poultry sector, such as equipment makers and vaccine providers, were also recommended.

The proportion of beef, pork and chicken consumed in developing countries was fairly evenly spread last year, at 34.8 per cent, 30.6 per cent and 34.7 per cent, respectively.

Companies with exposure to beef and pork are likely to see their stock prices fall, the report said.

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