September 21, 2007
High prices for US broiler products lead to increased production for Q3
High prices for most broiler products over the last few months have led companies to expand production through increasing the number of chicks for growout.
The trend is expected to continue as long as feed prices remain relatively stable, according to the USDA's Livestock, Dairy and Poultry outlook.
The US broiler meat production estimate for third-quarter 2005 is 9.05 billion pounds, up 1.9 percent from third-quarter 2006, the report said.
Most of the increase is expected to come from higher slaughter, as average weights at slaughter are expected to increase only modestly. Lower production in the preceding quarters and strong export demand were expected to have triggered the increase.
The number of birds slaughtered in July was 756 million, 5.5 percent higher than the previous year, the report noted.
The average live weight at slaughter was 5.47 pounds, up 1.7 percent from July 2006.
However, year-to-date broiler meat production up until July was still below the previous year, with one reason being the lower meat yield per bird.
Although broiler meat production in July was up 6.3 percent from a year earlier, much of this gain is due to 1 additional slaughter day in 2007, compared with 2006.
For the week ending September 8, the National Agricultural Statistics Service estimated that 177 million broiler chicks were placed for growout, a 1.7- percent increase from a year earlier.
Meanwhile, stock levels for broiler products were 19 percent below those of the previous year, to 622 million pounds.
Stocks for most products were lower, but the chief reason was a 38-percent decline in stocks of leg quarters. Bird flu stocks drove stocks to high levels last year due to a sharp decline in exports.
Lower production and higher export volumes have lowered stocks have driven prices for most broiler products higher.
Wholesale price for whole birds averaged about 79 cents a pound in August, 15 percent higher than in August 2006.
