YEAREND: Consumers see better prices in 2023, despite ongoing challenges for the poultry industry
Dec. 15, 2023
By Jessica Wesson
Center of Excellence for Poultry Science
U of A System Division of Agriculture
Fast facts
- Industry bounces back from 2022 challenges
- Prices improve for consumers despite ongoing HPAI difficulties
- International Avian Influenza Summit aimed to find new strategies in fight against HPAI
(653 words)
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FAYETTEVILLE, Ark. — Despite the ongoing challenge of avian influenza and recent plant closures, the poultry industry bounced back from a difficult 2022, resulting in lower chicken, turkey and egg prices for consumers in 2023.
Jada Thompson, assistant professor of agricultural economics and agribusiness for the University of Arkansas System Division of Agriculture, said 2023 brought some relief to poultry producers, even while noting some difficulties.
“Producers had an easing of highly pathogenic avian influenza outbreaks across the United States compared to 2022,” Thompson said. “We had strong bird placements, but broiler slaughter went down slightly. The plant closures across the United States reduced the slaughter capacity. However, across the year, overall poultry production was up compared to last year, with a slight dip in that trend in the fourth quarter.”
HPAI woes continue
The HPAI outbreak that began last year has become the worst outbreak of the deadly virus in the United States. As of Dec. 14, HPAI affected 426 commercial flocks, 586 backyard flocks and more than 72.5 million birds, according to the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service.
The first case of avian influenza detected in Arkansas this year was reported on Oct. 31 in a Madison County commercial broiler chicken flock of 31,600 birds. Since then, three more commercial flocks have reported positive for HPAI: two flocks in Carroll County and one in Johnson County. In Arkansas, 255,100 commercial birds were affected in 2023, compared to 56,000 in 2022.
Thompson said that broiler production had a strong start to the year but experienced a slowdown in August, in part because of plant closures.
“This is likely driven by changes in production capacity, shifting technology demands of the industry and continued HPAI pressures affecting domestic and international markets,” she said.
In the face of the ongoing outbreak, poultry science researchers and educators from across the Americas converged in Arkansas in October for the two-day International Avian Influenza Summit. The summit, hosted by the Division of Agriculture’s Center of Excellence for Poultry Science and the Arkansas Agricultural Experiment Station, brought poultry experts together to discuss efforts to manage the spread of HPAI.
Prices going down
Thompson noted that in spite of these pressures, prices were down compared to 2022.
“This was driven by increased supply,” Thompson said. “While HPAI still affected flocks across the country, the number of farms affected was substantially lower than last year, meaning supplies were able to recover.
“For example, egg prices were up by 145 percent in 2022 but are down 29 percent in 2023, year-over-year,” she said. “We saw good recovery in supplies, placements, hatching and sales for eggs. We rounded out the year in a much healthier place.
“We are seeing similar impacts in broiler and turkey prices as well,” she said.
Thompson said that an increased supply of turkey helped bring prices down in time for the holiday season.
“2022 was a hard year due to HPAI and inflationary pressures. Good supplies led into the 2023 holiday season, making Thanksgiving dinner more affordable this year,” Thompson said.
Arkansas is third in national ranking of turkey production, according to the latest USDA Turkeys Raised report.
Plant closures
Thompson said that poultry processing plant closures negatively affected growers in 2023.
“This impacted producers that were under contract, those that wanted to go under contract, as well as plant labor and customers,” Thompson said. “These plants weren’t operating at full capacity, but they were a source of income for Arkansans.”
She explained that many growers were able to get a new contract, but some were not so fortunate.
“There were some grower contracts that were bought out and had to look for a different integrator or get out of the poultry business,” Thompson said. “This impacts farm lenders and local communities.
“We are still seeing strong production numbers for Arkansas and should continue to be a national leader for broiler production,” she said.
To learn more about Division of Agriculture research, visit the Arkansas Agricultural Experiment Station website: https://aaes.uada.edu. Follow on Twitter at @ArkAgResearch. To learn more about the Division of Agriculture, visit https://uada.edu/. Follow us on Twitter at @AgInArk. To learn about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit www.uaex.uada.edu.
About the Division of Agriculture
The University of Arkansas System Division of Agriculture’s mission is to strengthen agriculture, communities, and families by connecting trusted research to the adoption of best practices. Through the Agricultural Experiment Station and the Cooperative Extension Service, the Division of Agriculture conducts research and extension work within the nation’s historic land grant education system.
The Division of Agriculture is one of 20 entities within the University of Arkansas System. It has offices in all 75 counties in Arkansas and faculty on five system campuses.
The University of Arkansas System Division of Agriculture offers all its Extension and Research programs and services without regard to race, color, sex, gender identity, sexual orientation, national origin, religion, age, disability, marital or veteran status, genetic information, or any other legally protected status, and is an Affirmative Action/Equal Opportunity Employer.
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Media Contact:
Jessica Wesson
479-575-4952
jwesson@uark.edu