The United States Department of Agriculture’s 2024 broiler forecast is out, and producer margins are riding on a reduction in cases of High-Path Avian Influenza (HPAI)
The USDA’s outlook board is projecting next year’s broiler production to be up about 1.5 percent, coming in just shy of 48 billion pounds. Prices are expected to average $1.28/pound, down about 2 percent in 2023.
However, outlook board chair Mark Jekanowski says producer margins could still improve—however, that depends on lower feed prices and an expectation for a decrease in HPAI cases.
HPAI is still a concern for poultry producers all across the U.S., but cases of the virus have slowed in recent weeks.
APHIS hasn’t posted a significant case of more than 100 birds since mid-April. The most recent was a facility in Indiana where 20 birds were culled.
Right now, the USDA is testing a handful of vaccine candidates, but industry experts warn there could be significant pushback because other countries don’t like vaccinated poultry.
Farm Bureau Economist Bernt Nelson says vaccinating the U.S. poultry population could cost the U.S. more than $6 billion dollars in lost trade value. Officials say producers should instead focus on keeping up with their biosecurity measures.
With core input inflation still hovering high, growers and retailers should plan pricing and promotions with tighter margins in mind — target early sales, leverage bundle deals, and secure logistics ahead of peak Halloween demand.
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While there has been an increase in outbreaks of Highly Pathogenic Avian Influenza (HPAI) this migration season, the CDC says the public health risk is low.
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Imported lean beef continues to play a critical role in U.S. hamburger and ground-beef production, with any added volume from Argentina serving as a supplement — not a market overhaul.
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R-CALF USA CEO Bill Bullard joins Market Day Report for his insight on the USDA’s plan to strengthen the U.S. beef industry.
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Until a phased reopening is inked, plan for tighter feeder availability, firmer basis near border yards, and continued reliance on domestic and Canadian sources.
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