U.S. poultry market snapshot: Poultry production growth stunted
Average U.S. poultry production during the 12 months through November is down 0.5 percent compared with the year-ago level. The quarterly growth rate is below the annual growth rate, suggesting the downward trend in the annual growth rate will persist during at least the next quarter.
U.S. poultry production is hindering overall U.S. animal slaughtering and processing production (up 2 percent in 2016), as annual average U.S. animal slaughtering and processing production (excluding poultry) increased 4.5 percent during 2016 compared with the 2015 level. U.S. beef production is mitigating the decline in poultry production, with average annual U.S. beef production rising 5.9 percent during the 12 months through November. Input prices across the poultry industry could increase as rising commodity prices push up feed costs in 2017. Some of this upward pressure is already occurring, as the U.S. Prepared Animal Feeds Producers Price Index in December was up 2.7 percent from the December 2015 level; however, the industry is still struggling with oversupply of most grain products, which could stunt this rising trend. NP