January 3, 2007

Mississippi poultry output up 15 percent amid high production costs

Mississippi's poultry industry withstood high feed and fuel costs in 2007 to remain the state's largest agricultural generating US$2.3 billion.

In 2006, the poultry production reached US$2 billion, but was outdone by 2007 production, which was up by 15 percent.

John Anderson, an agricultural economist with Mississippi State University's Extension Service, said that high prices for chicken and other poultry, as well as strong hatchery production, significantly contributed to the increase.

Anderson shared that in 2007, some broiler companies pulled back from production due to high feed prices. As a result, the poultry prices increased and demand also became strong.

The weakening of the American dollar late last year also made poultry exports more affordable overseas, he said.

Cal-Maine Foods Inc., an egg producer based in Jackson, reported profits of US$58.1 million for the first six months of the fiscal year ended December 1, compared to US$970,000 for the same period in 2006.

However, not all poultry farmers are enjoying the reported growth of the industry as some are reeling from high fuel costs.