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.

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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
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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.

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