September 14, 2007

Stable growth in US broiler production expected for the next decade

US broiler production is expected to grow by an average of 1.6 percent annually from 2007 to 2016, according to the 2007 Agricultural Outlook from the Food and Agricultural Policy Research Institute (FAPRI).
 

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.

However, much of the increase in prices is offset by higher feed costs for producers, the report said.

The report also raised two concerns- the decline of domestic consumption and the slower growth in exports for the next decade.

Domestic consumption of chicken is expected to decline this year for the first time since 1973, while broiler exports posted growth of only 1.3 percent in 2006.

FAPRI expects only modest gains for the next decade. 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, the report added.