U.S. broiler production is expected to increase by nearly 3 percent in 2014 as producers are expected to take advantage of lower feed costs. The U.S. Department of Agriculture, in its November 15 Livestock, Dairy & Poultry Outlook report, forecast annual broiler production to reach 38.9 billion pounds.
As expected, the biggest reason for the projected increase in U.S. broiler production in 2014 is a decrease in feed costs in 2014. Gerry Bange, USDA outlook chairman, said the price of corn is expected to drop 25 percent, while soybean prices should decrease 15 percent.
"Clearly, the broiler folks want to jump on this," Bange said during a USDA broadcast. "Simply stated, we're looking at lower feed costs and better returns. We think that's reason enough to show an increase in our production in 2014."
The U.S. broiler industry's increase in production appears to be coming earlier than 2014, as the USDA report also forecast production for the fourth quarter of 2013 at 9.5 billion pounds, a 3.3 percent increase from U.S. broiler production in the third quarter of 2013.
We're thinking in terms of 38.9 billion pounds of broilers in 2014, that's an increase of 3 percent compared to 2013. Simply stated, we're looking at lower feed costs, better returns. We think that's reason enough to show an increase in our production forecast for 2014.