Rising Chicken Supplies Pressure Prices Heading into 2026

Expanding chicken supplies are likely to keep prices under pressure in early 2026 despite steady demand growth.

A photo of two little boys playing inside a greenhouse with farm animals including chickens, ducks and a fluffy white farm dog.

FarmHER Jen Welch (Season 1, Episode 2)

FarmHER, Inc.

NASHVILLE, TENN. (RFD News) — U.S. chicken production expanded sharply in 2025, setting up lower prices and tighter margins for the poultry sector as the industry moves into 2026. Analysis by Dr. David Anderson, a professor and Extension economist at Texas A&M University, shows that broiler output rose 3.3 percent last year, driven by more birds and heavier weights.

Egg sets for broiler grow-out increased about 1 percent in 2025, leading to higher chick placements and a 2.1 percent increase in broiler slaughter. Average weights rose another 1.2 percent, compounding production gains. That growth was initially fueled by strong profitability early in the year, when the broiler cutout climbed from 85 cents per pound in January to a May peak of $1.07.

Prices, however, retreated sharply in the second half of the year. By late December, the broiler cutout had fallen to 63 cents per pound. Key wholesale items followed the same path, with breast meat, leg quarters, and wings all dropping well below year-ago levels.

Looking ahead, lower prices, ongoing HPAI risk, and rising production point to continued margin pressure, even as demand benefits from chicken’s affordability relative to beef.

Farm-Level Takeaway: Expanding chicken supplies are likely to keep prices under pressure in early 2026 despite steady demand growth.
Tony St. James, RFD News Markets Specialist
Related Stories
The Cotton-4 are pushing hard for new value chain investments. Still, many U.S. cotton producers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.
Late harvest and tight supplies shape crop progress and agribusiness this week. Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Dec. 1, 2025.
Cargill’s commitment to keep plants open helps preserve competition as Tyson removes capacity amid historically tight cattle supplies.
Tryston Beyrer, Crop Nutrition Lead at The Mosaic Company, examines planning trends as producers weigh corn and soybean plantings for 2026.
Brooks York with AgriSompo joins us to offer an update on what agents are prioritizing as the calendar year winds down.
The newly elected Executive Vice President of the Tennessee Cattlemen’s Association (TCA), Dale Parker, joins us on-set to share his vision for his state’s cattle industry.
SDRP Stage 2 now helps producers recover shallow, uninsured losses from major 2023–2024 disasters, with streamlined sign-ups open through April 30.
Tyson’s capacity cuts weaken local basis, tighten kill space, and heighten dependence on imports, signaling more volatility for producers.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Strong Farm Credit finances help cushion producers, but prolonged low crop margins could strain renewals in 2026.
USDA data confirms that U.S. agriculture remains overwhelmingly family-run despite structural shifts in scale and production, according to a new analystis by Farm Flavor.
Stronger sorghum genetics could enhance the resilience of bioenergy crops and broaden production options for growers in harsher climates.
Rising beef supplies and lower cattle prices, weaker hog markets, and softening dairy prices will shape producer margins heading into 2026.
Canadian tariffs would raise costs for potash, ammonia, and UAN, increasing spring fertilizer risk.
A permanent national E15 standard would boost corn demand, lower fuel costs, and provide a stable path for U.S. energy security.