The combination of lower output prices caused by the recession and higher input costs have reduced meat production growth substantially. Prices are expected to increase in the next couple of years but the increased cost of inputs will push prices higher at the consumer levels for all meat. International demand for US meat remains strong but the US dollar is expected to remain weak which will result in more competitiveness of US product overseas.
The amount of chicken available for the domestic market grew by nearly five per cent in 2010. Despite this growth, per capita sales were at a lower level than in 2004. The chicken market will have an opportunity to gain market share over the next few years due to tighter supplies of beef and pork but high feed costs are expected to limit that opportunity. Wholesale chicken prices increased by seven per cent in 2010, a rate of growth well below that of other meat commodities. Chicken production growth over the next decade is expected to average just over 1.6 per cent but exports are not expected to increase as much due to competition from other countries.
Wholesale turkey prices in 2010 were at their third largest premium to chicken prices since 1986. Prices are expected to remain strong since flock expansions have been kept in check up to this point.
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