The turkey market downturn that began in 2012 continued into this year. While prices for some parts recovered during the year, prices for breast meat — and to some extent whole turkeys — continued to be soft throughout the year. An improved feed-cost outlook mitigated some of the pain from low prices, but the feed markets remain extremely volatile because of the federal renewable fuels policy, and most processors found their margins squeezed.
There is reason for cautious optimism heading into 2014. Most processors appear to have cut production, and USDA in mid-September announced a 30-million-pound bonus purchase of breast meat and whole birds. These actions increased hope that cold-storage stocks, which remained high at the end of summer, would begin to return to more normal levels.