The top U.S. broiler companies increased chicken production significantly in 2012, amid high grain prices and slowly recovering consumer demand in the foodservice sector. The largest 15 chicken companies reported the highest production increases in absolute and percentage terms.
Nine of top 10 chicken companies increased production
The top 10 chicken producers increased ready-to-cook production by a combined 41.5 million pounds weekly. Only one of the top 10 chicken producers reported a decrease in ready-to-cook chicken production.
Tyson Foods, the nation’s largest broiler company, produced 167.51 million pounds of RTC chicken on a weekly basis in 2012, an increase of 1.65 million pounds or 1 percent.
No. 2 ranked Pilgrim’s Inc. reported 149.03 million pounds of RTC chicken production on a weekly basis in 2012, an increase of 18.21 million pounds or 13.9 percent.
Sanderson Farms, the third-largest U.S. chicken company, reported 56.9 million pounds RTC chicken production on a weekly basis in 2012, an increase of 2.95 million pounds or 5.5 percent.
No. 4 ranked Perdue Farms produced 54.71 million pounds of chicken on a weekly basis in 2012, an increase of 1.17 million pounds or 2.2 percent.
Koch Foods jumped to No. 5 from No. 7 in last year’s ranking, by producing 48 million pounds of RTC chicken production on a weekly basis in 2012, an increase of 12.85 million pounds or 36.6 percent. JCG Foods LLC, an affiliate of Koch Foods Inc., purchased the assets of Cagle’s Inc. for a reported $93 million.
No. 6 ranked Mountaire Farms reported 39.26 million pounds RTC chicken production on a weekly basis in 2012, an increase of 3.14 million pounds or 8.7 percent.
Wayne Farms, which dropped to No. 7 in this year’s rankings (from No. 5), is the only top 10 broiler company reporting a decrease in production in 2012. The company re ported 36.65 million pounds RTC chicken production on a weekly basis, a decrease of 0.71 million pounds or 1.9 percent.
No. 8 ranked Peco Foods reported 23.05 million pounds RTC chicken production on a weekly basis in 2012, an increase of 1.17 million pounds or 5.3 percent.
No. 9 ranked House of Raeford reported 21.88 million pounds RTC chicken production on a weekly basis in 2012, an increase of 0.48 million pounds or 2.2 percent.
Foster Farms, at the No. 10 spot in the rankings, reported 20.92 million pounds RTC chicken production on a weekly basis in 2012, an increase of 0.55 million pounds or 2.7 percent.
Mid-sized chicken producers report increases
A number of mid-sized chicken companies reported significant production increases. Three of these companies led the pace with production increases ranging from 14.7 percent to 18.3 percent.
No. 11 ranked Koch Foods reported 19.97 million pounds RTC chicken production on a weekly basis in 2012, a decrease of 0.23 million pounds or 1.1 percent.
No. 12 ranked George’s Inc. produced 19.13 million pounds of chicken on a weekly basis in 2012, an increase of 2.65 million pounds or 16.1 percent.
Case Foods, at the No. 14 spot in the rankings, reported 15.41 million pounds RTC chicken production on a weekly basis, an increase of 2.38 million pounds or 18.3 percent. The company acquired the Park Farms processing plant and hatchery in Canton, Ohio.
No. 15 ranked O.K. Industries produced 14.7 million pounds of chicken production on a weekly basis, an increase of 1.88 million pounds or 14.7 percent.
Smaller firms reported less production change
Production volume changes were less dramatic, for the most part, for companies ranked below the top 15. Eleven companies ranked lower than 15 reported either no change in production volume or less than 1 percent change. Four of the firms reported decreases in production. Only one firm ranked below fifteenth reported a production increase greater than 4 percent.
Companies reporting decreases included No. 16 ranked Fieldale Farms, which reported a decrease of 1.1 million pounds or 7 percent; No. 17 ranked Simmons Foods, which reported a decrease of 1.1 million pounds or 8.1 percent; No. 21 ranked Marshall Durbin, which reported a decrease of 0.54 million pounds or 7.1 percent; and No. 23 ranked Allen Harim Foods, which reported a decrease of 1.65 million pounds or 27.6 percent.
No. 27 ranked Gerber's Poultry, on the other hand, increased production by 0.33 million pounds or 29.7 percent.
Capital improvements
George’s completed the expansion and installation of an IQF freezer in its Harrisonburg, Va., processing plant.
Allen Harim Foods invested $3.5 million in an antibiotic-free boneless dark meat project at the Harbeson, Del., plant. It invested $350,000 in a small-bird deboning/portioning project for the Cordova, Md., plant.
Gerber’s Poultry upgraded its processing plant with high-speed scaling and labeling equipment and structural renovations.
