Poultry Prices Explained

Analysts predicted the increase in poultry prices in the market as pork and beef supply continue to decline due to the after-effects of droughts which diminished these commodities supply. However, records of livestock growers switching to poultry farming to recover their losses will likely stabilize chicken consumption. Additionally, recurring Avian influenza will always keep poultry prices in check as production and consumption rely on the presence of this disease.

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, any price grain price variation will ultimately affect poultry prices in the market. 

2. Disease Outbreak

Disease outbreaks within the poultry industry create disturbance in the supply chain, resulting in decreased supply and increased costs for the non-affected area. Moreover, this situation, coupled with health-related consumer concerns leads to short-term fluctuations in poultry prices.

3. 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 holidays or seasons of the year. These factors impact both the production and consumption of poultry products, ultimately influencing their prices.

As a result, 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.

4. 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 business 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.

5. Market Competition

Market competition plays a crucial role in determining poultry prices by influencing the supply and demand dynamics within the poultry industry. For instance, the availability of other products such as turkey and duck meats will erode the marketability of chicken meat. Thus, affecting its prices. 

Which variables impact the price of poultry?

• Feed Costs
• Disease Outbreak
• Seasonal Variation
• Production Costs
• Market Competition
• Trade and Export Policy

Where does poultry come from?

Poultry are domesticated birds kept by humans to harvest useful animal products such as meat and eggs. Additionally, each of these poultry species has its specific characteristics, advantages, and purposes in the poultry farming industry.

Farmers and consumers 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 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 lean meat and protein-pack eggs. Additionally, the meat quality of these animals is good for healthy diets.

What is the future price of poultry?

Poultry farming is important as it allows us to increase livestock production to cover the demands of a tremendously increasing population. Also, poultry meat is the most preferred meat among beef, pork, and other red meat as it is comparatively less expensive.

Generally, poultry prices thread along its production capacity, disease outbreaks, and the availability of other red meat sources such as pork and beef. These dynamics are responsible for poultry price fluctuation. However, sustainable growing practice emerges as an opportunity or threat to this commodity as they challenge the credibility of growers and companies to take responsibility for their impact on the whole value chain. 

Overall, the poultry market is expected to grow at a CAGR of 6.8% to $645.7 billion by 2030. Additionally, 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.