A larger chick placement cut, rising chicken meat prices and falling feed grain costs will move the poultry business back to profitable levels later this year, according to Fieldale Farms President, Tom Hensley, during the International Poultry Expo.

Chick placement reduction will soon move to 10-percent below year-before levels, said Hensley.

Previous cuts of 6-7 percent were not enough to bring supply back in line with demand and to reduce freezer storage stocks to more manageable levels, said Hensley.

Hensley said the larger cut should be enough to clean out the freezers and move broiler meat prices back to profitable levels later this year.

Corn prices will drop and stay in the US$3.00 to US$3.50 per bushel range for grain delivered to the mill, while soymeal will fall below US$250 per tonne, according to Hensley.

These reductions in feed ingredient costs will lower broiler production cost by US$0.04 per pound, he said.

Increased prices for broiler parts and meat will raise income by another US$0.03 per pound, when combined with lower input costs, should be able to give producers a healthy margin, around US$0.04 per pound above break even, said Hensley.

Hensley also suggests that the poultry industry should scrutinise its production volume, which would improve the sector's fortunes.