Slow growth in the world economy recently is reflected in the slow growth of world chicken production, according to a recent market report from Aviagen. World chicken production growth averaged just 1.5% recently. It is likely that growth will accelerate starting in 2025 and rise to an average of 2% for the last half of the decade.

Low prices in the US in 2023 led to an increase in production of only 0.4% last year. For 2024, the USDA predicts growth will increase to 1.1% with most of the growth in the second half of the year.

The spot prices of deboned breast in the US rose surprisingly fast in the first five months of 2024, helped by high prices for competing meats. In addition, a relatively robust US economy with low unemployment helped support the price. For the entire year the average price of deboned breast is likely to be significantly higher than last year.

Spot prices for frozen leg quarters are slightly higher than last year despite a reduction in the volume of exports. Trade issues and a relatively strong dollar are reducing the potential volume of exports.

Wing prices are remarkably high. The price is now double the price last year at this time. Wing prices can be expected to remain high as demand appears to be insatiable.

Due to the firm demand for chicken and low price of grain, chicken production in the US is currently profitable when calculated using spot prices, and is likely to continue to be profitable throughout the year.