Broiler Producers Can Expect Higher Feed Costs
Those who raise broilers could pay anywhere from 7%-20% more this year for feed. And since feed is most of the cost of production, those feed prices could effect the number of birds raised and sold in the coming year or two. Mark Jekanowski, USDA Outlook Board Chairman, said there will be in increase in broiler production this year, but it will be a marginal one at less than 1%. Most of that is going to happen the first six months of 2021.
"[Meanwhile, the] second half of the year we expect production to be down because of the higher feed costs."
Broiler producers, Jekanowski noted, unlike their counterparts in cattle and hogs, can react relatively quickly to changes in costs of production and so Mark says by mind-year broiler output could start dropping, which would also support prices, he noted.
USDA has added 3.5 cents per pound to to it's 2021 average broiler forecast, now at 84.5 cents per pound, up roughly 15% from last year.
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