Market Trends of united states poultry meat Industry
Rising poultry production is driving the market growth
- The US poultry industry is the world's largest producer and second-largest exporter of poultry meat, as well as a major egg producer. The country's consumption of poultry meat (broilers, other chicken, and turkey) is about 45% higher than other meat types like beef or pork. Its combined poultry production value includes 68% from broilers, 13% from turkey, and less than 1% from chickens.
- In 2021, the United States produced 9.13 billion broilers, a 1% decline from 2020. The number of turkeys raised in 2021 was 217 million, down by 3% from 2020. Turkey's meat production in the United States during January-September 2022 was 3.91 billion pounds, which was 7% down from the same period in 2021. However, the decline in turkey production was outweighed by increases in broiler production. In 2022, the United States sold nearly 200 million chickens (excluding broilers), a decrease of 4% from 2021. About 111 billion eggs were produced, a 1% decrease from 112 billion in 2021. Georgia, Alabama, and Arkansas were the leading US states producing broilers and accounted for 1,298,900, 1,171,600, and 1,051,300 thousand per head of broilers, respectively, in 2022. Chickens in the wild usually lay 10-12 eggs a year, limited by the stress their bodies undergo when laying.
- Sales in the poultry industry as a whole totaled USD 76.9 billion in 2022, up 67% from 2021. Sales of broiler chicken climbed by 60%, turkey sales by 21%, and egg sales by 122%. In 2022, all three industries experienced price increases, with the emergence of highly pathogenic avian influenza (HPAI) having an especially negative effect on the egg and turkey industries. From 2021 to 2022, benchmark prices rose 25.9% for turkeys and 38.9% for broilers.
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High feed prices elevated the prices of poultry meat
- The poultry sector was affected by the Highly Pathogenic Avian Influenza (HPAI) outbreak in 2022. With tight supplies before the outbreak and disease-related supply shortages, wholesale hen prices climbed to a record monthly average of USD 1.81 per pound in November, and prices remained elevated throughout the fourth quarter of 2022. Prices for the first seven weeks of 2023 had an average of USD 1.72 per pound. Although prices were expected to fall during the second half of 2023, the average national turkey hen price is expected to be USD 1.62 per pound, compared to an average of USD 1.55 in 2022.
- Chicken prices in the United States are rising due to higher feed costs. Russia produces 17% of the world's maize exports. Russia is also one of the largest exporters of the three main types of fertilizers (nitrogen, phosphorous, and potassium), which are essential to the production of corn used as feed for poultry. The Russia-Ukraine War consequently increased the feed costs for poultry, which escalated the prices of chicken meat in the country.
- The subsequent economic reopening and growth have tightened supplies and increased the prices for chicken breasts, which are in various forms and places. In 2021, boneless and skinless chicken breasts were USD 3.45 per and increased to USD 4.32 per pound in 2022. High demand for chicken breasts, boneless chicken, chicken legs, and other cuts like chicken wings is mainly due to the use of specific types of cuts by foodservice operators such as KFC, Popeyes, Jollibee, and Mcdonald's. Hence, it is anticipated to elevate the price during the forecast period.
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