US chicken consumption strong this quarter - CoBank
US broiler production up 0.7% YoY
23 October 2024
2 minute read
By: Chicken consumption was strong this quarter, benefitting from increased feature activity, falling feed rations and consumers seeking value at the meat case, according to a market report from CoBank.
While global pork demand is supportive in the US hog sector, the focus in the broiler sector is growing through domestic outlets. Disappearance is on pace to rise 1.5 lbs./capita annually in 2024, to 102 lbs., according to the latest ERS forecast.
Cumulatively, US broiler production is up 0.7% YoY, which is an amazing feat considering chick placements had been trailing year-ago numbers through much of the fourth quarter of 2023 and early in 2024. But increasing placements as of late have not necessarily resulted in rising slaughter numbers, as chick mortality rates have been higher. Liveweights were up 0.14 lbs., or 2% YoY, from January-September working to offset a 0.9% reduction in slaughter numbers.
The increase in liveweights is in part a response to falling feed prices and improved processing efficiencies, but it is also tied to growing demand in the value-add segment. Items like boneless/skinless breast meat were fetching $1.90/lb. in August because of increased feature activity both at retail and food service.
Both exports and cold storage holdings of leg quarters are sitting at five-year lows, and wholesale values remain elevated, hovering near $0.50/lb. through summer months as domestic marketers seek value-oriented items. Overall, broiler integrators are doing quite well in the current pricing environment.
