Poultry Prices Explained
Chicken prices are projected to rise globally due to a limited supply and higher input costs as producers will try to increase investments in enhancing their production capacities.
Here are some reasons why poultry prices fluctuate:
Why are poultry prices fluctuating?
1. Feed Costs
Feed cost is a critical factor that significantly impacts poultry prices as it constitutes a significant portion of the total production expenses in the poultry industry.
Poultry heavily relies on nutritionally balanced feed, primarily made up of grains like corn and soybeans, for efficient growth and egg production.
Thus, the prices of these grains experience fluctuations due to various factors such as weather conditions, global demand, and geopolitical events.
2. Disease Outbreak
Disease outbreaks within the poultry industry create disturbance in the supply chain, resulting in decreased supply and increased costs.
Moreover, this situation, coupled with health-related consumer concerns leads to short-term fluctuations in poultry prices.
3. Supply and Demand
Fundamental economic laws of supply and demand exert a significant influence. If demand for poultry products rises, their prices increase. Conversely, oversupply can lead to a drop in costs.
4. Seasonal Variation
Seasonal variation affects poultry prices due to shifts in supply and demand patterns that are influenced by various factors specific to different times like specific holidays or seasons of the year.
These factors impact both the production and consumption of poultry products, ultimately influencing their prices.
Producers adapt production and pricing tactics to align with increased demand during peak seasons while consumers strategize their purchases to save on costs by considering seasonal price patterns.
5. Production Costs
Expenses related to labor, utilities, transportation, and facility maintenance affect poultry prices.
Variations in these costs directly influence the overall cost of production as when production costs rise, producers may adjust poultry prices to ensure profitability and sustainability.
Conversely, if production costs remain consistently high or increase substantially, buyers experience higher prices for poultry products at the retail level to cover these additional expenses.
6. Market Competition
Market competition plays a crucial role in determining poultry prices by influencing the supply and demand dynamics within the poultry industry.
Additionally, it is a critical factor that affects how poultry prices are set, influencing both producers and consumers.
Which variables impact the price of poultry?
- Supply and Demand
- Feed Costs
- Production Costs
- Disease Outbreak
- Seasonal Variation
- Market Competition
- Energy Costs
- Trade and Export Policy
Where does poultry come from?
Poultry are domesticated birds kept by humans for the purpose of harvesting useful animal products such as meat and eggs.
Additionally, each of these poultry species has its own specific characteristics, advantages, and purposes in the poultry farming industry.
Farmers and consumers may choose among these species based on factors such as taste preferences, market demand, availability, and local traditions.
Here are some examples of poultry animals:
1. Chickens – the most widely raised poultry globally. They are farmed in almost every country, and it is the most recognized source of poultry meat and eggs.
2. Ducks and Geese – they are often raised for their meat and eggs. Moreover, it is known for its unique taste and popularity in various cuisines worldwide.
Geese are raised for their meat, feathers, and sometimes liver. Goose meat is considered a delicacy in some cultures.
3. Turkeys – the primary purpose of raising turkeys is for their meat. They are especially popular during holidays like Thanksgiving. Additionally, its meat serves as a major source of poultry protein.
4. Quail – they are relatively small birds and are raised for their eggs and meat, which is considered a delicacy in many regions.
5. Ostrich and Emus – though less common, ostriches and emus are raised for their meat and eggs. Ostrich and emu meat are lean and considered healthy.
What is the future price of poultry?
Poultry farming is important as it allows us to increase livestock production to cover the demands of human beings tremendously increasing in population.
Additionally, poultry meat is the most preferred meat among beef, pork, and other red meat, and is comparatively less expensive.
The poultry market is expected to grow at a CAGR of 7.2% to nearly $465.7 billion by 2025, and at a CAGR of 6.8% to $645.7 billion by 2030.
Overall, it is expected that the price of all types of poultry will rise in the coming years. For example, the price of chicken breasts is projected to reach $4.50 per pound by 2030.