The Poultry Industry

Dr. Michael Smith

 U.S. Poultry Industry
 Broilers
 Eggs
 Turkey
 U.S. Poultry Industry
 Highly specialized and efficient set of enterprises.
 Leader in trends of industrialization in agriculture
over the last 50 years.
 Started on family farms in the Midwest – grain
production plentiful.
 Broilers – small flocks; eggs – grocery money.
 Spread to east coast – Maine & Delmarva
California
 South – labor plentiful, inexpensive housing, mild
climate
 Commercial Production Today
 95% w/20,000 growers
 85% of eggs are produced by 2,000 large
companies
 20,000 growers provide 18% of production
 Importance
Poultry convert feedstuff to food efficiently.
As indicated below, Boilers have the most
favorable PER and FC ratio.

Species Feed/ Grain

Cattle 6.5 – 7.9
Sheep 6.3 – 7.1
Swine 3.1 – 3.9
Broilers 1.8 – 2.2
Turkeys 2.5 – 3.2
 Importance

 Poultry industry is dynamic

 Short period required for growth and marketing
 Can adjust rapidly to changing economic factors
 feed, availability, cost, number of birds on feed.
 Other livestock industries require longer length
of time from birth to market (e.g. cattle).
 Importance

 By-product feeds fed to poultry:

blood meal, fish meal, meat and
bone, distillers grains.
 Not used for human consumption
 Importance

 Layers provide a continuous source of

food.
 Meat animals must be fed for a long period
of time before a usable product is obtained.
 Layers produce several times its weight in
eggs.
 Products from meat animals are restricted to
final market weight.
 Importance

 Vegetarians consume eggs.

 In some countries meat eaters are the

minority.
 Religion.
 Egg consumption acceptable.
 Importance
 Poultry products are relatively inexpensive.
 Poultry meats are one of the best meat buys in
the supermarket.

Average Retail Price ($/lb)

1989 1991 1992 1993 1995 2000
Beef 2.66 2.88 2.85 2.94 3.54 2.53
Pork 1.83 2.12 1.98 1.94 2.18 2.28
Chicken .93 .88 .87 .88 1.39 1.55
Turkey .99 1.00 1.00 1.06 .99
 Importance

 Poultry manure as fertilizer.

 Organic farming
 Premium price?
 Rich in Nitrogen and organic material.
 By-product feed for ruminants
Present Status of the Industry
http://www.ces.ncsu.edu/depts/poulsci/techinfo/4Pst39.htm
 Broiler Production
2002 Statistics
Production Time 47 days
Feed Efficiency 1.8 lbs of feed/gain
Number Slaughtered
Live Weight 44.1 billion lbs.
3.8 = Fast Food (30%)
Average Weight
4.63 = Retail (32%)
(5.01)
6.0 = Deboning (37%)
Price
Farm 36.5 ¢
Wholesale 61.5 ¢
Retail $1.50
Per Capita Consumption 77
Marketing Method
Whole 8
Cut-up Parts 46
Further Processed 46
Broiler Production
 Egg Production
2002 Statistics
Number of Layers 237 million
Number of Eggs Per Layer 257
Total Number of Eggs 86.7 billion
Per Capita Consumption 254
Prices
Farm 59 ¢
Jumbo = 249-289 ;
Extra Large = 219-249 100;
Retail
Large = 199-239 87;
Medium = 179-199 61
Processed Egg Products
White Egg Production
Egg Production
 Turkey Production
Statistics
Number Slaughtered 281 million
Price
Farm 36.5 ¢/lb
Retail 97.0 ¢
Per Capita Consumption 19 lbs
Marketing Methods
Whole Birds 40 %
Cut-up Parts 16 %
Further Processed 44 %
Production Time
Toms 18
Hens 15
Average Weight
Toms 26
Hens 15
Feed Efficiency
Toms 2.8
Hens 2.6
Turkey Production
 Production Figures
Income (U.S.) 2003 (2002)
$23.3 billion total ($20.5 billion)
Broilers 65 %
Eggs 23 %
Turkeys 12 %

2003 (2002)
Produced (lbs) Farm Price Value
34.6 ¢
Broilers 44 billion $15.2 billion
(30.5 ¢)
36.0 ¢
Turkeys 7.55 billion $2.72 billion
(36.5 ¢)
87.2 billion 73.1 ¢/doz
Eggs $5.32 billion
[7.26 billion dozen] (59 ¢)
 Production Figures

Tennessee Income 2003 (2002)

Produced (lbs) Farm Price Value
948,000,000 34 ¢ $322,320,000
Broilers
(894,700,000) (30 ¢) ($268,410,000)
290,000,000
$1.32 $31,900,000
Eggs [24.2 million doz]
($1.27) ($31,750,000)
(300,000,000)
 World Poultry Distribution
Important that producers have a global
perspective
 Potential competitors

 Potential markets
World Poultry Distribution
Chickens 14,857 million
China 3771 million
US 1830 million
Brazil 1006 million

Ducks 917 million

China 636 million
Vietnam 57 million
Indonesia 28 million
Thailand 27 million

Turkeys 243 million

U.S. 88 million
France 42 million
Italy 25 million
 Retail Price
Washington Mexico Paris Rome Stockhol Tokyo
D.C. City m
Broilers 1.03 .55 1.34 1.83 2.86 2.26

Eggs .77 .54 .84 1.29 2.30 1.74

Figure 1. Per Capita Consumption of Poultry in
Canada and the United States

http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/pou4181
 Future of the Industry
1. Increased biotechnology. Embrex Inovoject
2. Increased mass production- year round availability of
products.
3. More contract and integrated production. Larger
integrators.
4. Increased labor- saving device.
5. Sustainable agriculture.
6. Increased attention to poultry behavior and welfare.
7. Increased food safety.
8. Increased quality of products.
9. Increased consumption.
 Careers In Poultry

Visit
 http://www.poultryscience.org/careers/

 http://www.poultrysolutions.com/jobs/pou
carer.htm
 http://www.msstate.edu/dept/poultry/care
ers.htm