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
Mixed product pricing and rising milk supplies suggest margin management will remain critical as 2026 unfolds.
January 28, 2026 06:00 AM
·
Corn and soybean exports continue to anchor weekly inspection totals, with China maintaining a visible role, while wheat and sorghum remain more dependent on regional and seasonal demand shifts.
January 27, 2026 03:08 PM
·
Marilyn Schlake with the UNL Department of Agricultural Economics joined us for a closer look at the evolving role of livestock sale barns.
January 27, 2026 12:19 PM
·
Rail continues to carry a larger share of the grain load, increasing sensitivity to rail capacity, labor, and pricing conditions.
January 27, 2026 11:55 AM
·
Meat stocks rose seasonally but remain below last year overall, while tighter butter inventories could support dairy prices, and belly stocks warrant close watch for pork markets.
January 26, 2026 03:00 PM
·
A mid-January winter storm delivered snow, ice, and extreme cold to a broad swath of the U.S., disrupting transportation, stressing livestock systems, and adding cost and complexity to winter farm operations as producers look toward spring.
January 26, 2026 01:10 PM
·
