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Broiler Production Expected To Grow By 1.6% Annually From 2007

by 5m Editor
13 September 2007, at 10:58am

US - Lower chicken prices in the first half of 2006 led to a decline in production relative to a year ago for the final two quarters of 2006, a rarity for the industry.

Though output prices have recovered, producers are showing caution in the face of higher feed costs, limiting production growth in 2007. Broiler production is expected to grow by an average of 1.6% annually from 2007 to 2016, relative to 3.1% growth from 1997 to 2006.

Strong turkey demand led to record high prices for that industry in 2006. Wholesale prices for all poultry products remain high by historical standards, as meat supplies in general are projected to be tighter than in recent years.

Much of the increase in output prices is offset by higher feed costs for producers.

Domestic consumption of chicken is expected to decline this year for the fi rst time since 1973. Broiler exports posted growth of only 1.3% in 2006, and only modest gains are expected for the next decade. The strength of domestic demand for chicken suffered the most of any meat in 2006. It will be crucial for the industry to halt this decline in the face of weaker international chicken demand.

5m Editor