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
Chris McGovern from Connected Nation joined us Tuesday to break down the findings and discuss their implications for rural America.
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