This song was originally featured at the end of a British current affairs satire show called "Spitting Image". Most episodes ended with a musical number, usually sending up newsworthy figures in a musical parody of a recent hit.
"The Chicken Song" was intended as a parody of "Agadoo" by "Black Lace" - a tune that had become a million-selling single a year before. Despite (or perhaps thanks to) a repetitive melody and gibberish lyrics, Agadoo became one of the first holiday anthems, and therefore a perfect target for satirists.
The chicken song was actually written by Rob Grant and Doug Naylor who later became Grant Naylor, the entity responsible for Red Dwarf. If you still have a single of this record, great care must be taken playing it in case you accidentally play the B-Side called "I've Never met a nice South African".
May, 1986 was a great month for novelty records. The chicken song displaced "Rock Me Amadeus" by Falco and remained at number one for three weeks. The chicken song was knocked down by a rather good cover version of "Spirit in the Sky" by Doctor and the Medics.