In 2012, when drought migrated from the Southwest on throughout the grain-producing regions of the Midwest and beyond, 10 of 24 turkey producers in WATT PoultryUSA’s top poultry companies survey increased production. Undeterred by $7 a bushel corn and $350 a ton soybean meal, the number of turkey companies increasing production outnumbered those reporting production declines by more than two to one.
Tapping slow but positive growth in domestic demand for turkey meat and stronger prices bolstered by high red meat prices — and aided by strong export demand — turkey producers weathered 2012’s economic storm with a variety of growth strategies. But not all survived — Zacky Farms filed for Chapter 11 bankruptcy in October 2012, citing financial losses resulting from high grain prices. At press time, bidders for the bankrupt company included the Robert D. and Lillian D. Zacky Trust and Pitman Family Farms, Sanger, Calif.
Top 3 turkey producers hold the line on production
Among turkey producers reporting no change in production in 2012 was Butterball, the U.S.’s largest producer, which slaughtered 1.3 billion pounds of live turkeys. The company projects it will slaughter 1.3 billion pounds of live turkeys in 2013.
No. 2 ranked Jennie-O Turkey Store slaughtered 1.28 billion pounds of live turkeys in 2012, a decrease of 15 million pounds or 1.2 percent. The company projects it will again lower production in 2013 — albeit slightly — to 1.25 billion pounds.
Cargill Value Added Meats, the No. 4 ranked producer in the survey, slaughtered 1.1 billion pounds of live turkeys in 2012, no change from the previous year. The company projects it will decrease production to 1.07 billion pounds in 2013.
Farbest Foods, Hillshire Brands grow production significantly
Breaking the grow-slow pattern set by the top three U.S. turkey producers, No. 4 ranked Farbest Foods slaughtered 385 million pounds of live turkeys in 2012, an increase of 25 million pounds or 6.9 percent. The company projects it will increase production, again, in 2013 to 406 million pounds.
Still more expansion is expected to follow in 2014 when construction is to be completed for a 227,000-square-foot processing plant in Vincennes, Ind.
No. 5 ranked Hillshire Brands Company (formerly Sara Lee) slaughtered 358 million pounds of live turkeys in 2012, an increase of 18 million pounds or 5.3 percent. Hillshire plans to boost production in 2013 to 410 million pounds.
Kraft Foods, Foster Farms register little change
No. 6 ranked Kraft Foods Inc./Oscar Mayer slaughtered 280 million pounds of live turkeys in 2012, no change from the previous year. The company projects it will slaughter 7.1 million toms at a live weight of 280 million pounds in 2013.
Foster Farms, No. 7 in the survey, slaughtered 274 million pounds of live turkeys in 2012, a decrease of 0.2 million pounds or 0.1 percent. The company projects it will slaughter 4.57 million hens and 4.42 million toms at a live weight of 281.4 million pounds in 2013.
Perdue Farms, Virginia Poultry Growers register strong growth
No. 8 ranked Perdue Farms slaughtered 271 million pounds of live turkeys in 2012, an increase of 12.0 million pounds or 4.6 percent.
No. 9 ranked House of Raeford Farms slaughtered 253 million pounds of live turkeys in 2012, a decrease of 6 million pounds or 2.3 percent.
No. 10 ranked Virginia Poultry Growers Cooperative Inc. slaughtered 251 million pounds of live turkeys in 2012, an increase of 6 million pounds or 2.4 percent.
Who grew turkey production the most in 2012?
Ten of the turkey producers surveyed reported holding production the same as in 2011, while four reported decreasing production. But which companies increased production the most in 2012?
Based on number of live pounds, Farbest Foods increased its production level more than any other turkey producer. The company increased production by 25 million pounds.
Following close on Farbest’s heels in live-pound production increases in 2012 were Hillshire Brands and Zacky Farms with increases of 18 million pounds and 17.5 million pounds, respectively.
Rounding out the top five in production increases are Perdue Farms and Virginia Poultry Growers Cooperative at 12 million pounds and 6 million pounds, respectively.
Smaller turkey companies grow, too
Notable in their production increases were two smaller turkey producers, No. 23 ranked Koch’s Turkey Farm, which increased production by 1.4 million pounds or 8.8 percent, and No. 24 ranked Jaindl Turkey Sales, which increased production by 0.5 million pounds or 4.8 percent.
Who among the companies surveyed increased live pounds of turkey production by the greatest percentage? Zacky Farms at 13.2 percent.
Bullish in turkey production in 2013
Six of the turkey producers in WATT PoultryUSA’s survey said they plan to increase production of live pounds in 2013. Topping that list is Hillshire Brands, which projects it will increase production by 52 million pounds or 14.5 percent. Other producers reporting planned increases include Farbest Foods at 21 million pounds or 5.5 percent; Foster Farms at 7.4 million pounds or 2.7 percent; Dakota Provisions at 5 million pounds or 2.4 percent; Michigan Turkey Producers at 5 million pounds or 2.7 percent; and Cooper Farms at 3 million pounds or 1.4 percent.
