May 21, 2012

US chicken production is forecasted for a 2.5% rise next year, with growth spreading over as processors increase production in response to favourable conditions.

According to the USDA's Livestock, Dairy, Poultry and Aquaculture Outlook for May 2012, the increase in broiler production is expected to be a result of a higher number of birds slaughtered and a small increase in average bird weights. The two primary factors likely to influence expanded broiler meat production in 2013 are: the degree to which processors feel demand will reflect expansion in the general economy, what integrators expect for changes to corn and soybean prices.

In the first quarter of 2012, broiler meat production was down 2.2%, compared to the same period last year. The number of broilers slaughtered fell by 2.6%, which was offset by a small gain the average weight of birds at slaughter.

Broiler meat production forecast for the second quarter of 2012 has been lowered by 4.3% from a year earlier. It is expected that production will be below the previous until the fourth quarter of 2012 when processors respond to a gradually strengthening economy and lower grain prices.