Lower Feedstuff Costs Help Offset Chicken Prices

US - In early 2004, the U.S. broiler industry boosted production in response to strong wholesale chicken prices.

This year, the broiler industry has continued to increase production, however unlike last year, production increases were prompted by lower feedstuff costs which have helped to offset declines in wholesale chicken prices this year.

In 2005, Federally Inspected (FI) broiler production (ready-to-cook basis) has been above a year ago, due to both year-to-year gains in broiler slaughter and bird weights.

January through April broiler production (ready-to-cook basis) was up 3 percent from 2004 and 11 percent above the prior five-year average. Weekly data for May suggests broiler slaughter up 2.5 percent from 2004, when coupled with heavier weights, would put broiler production about 3 percent higher than last year. Although, the year-to-year increase in weekly egg sets and chick placements has modestly declined in May, (both up on average 1 percent) broiler production will continue to post a yearly gain this summer.

Source: cattlenetwork.com

6 June 2005