Source: Rita Jane Gabbett, MEATINGPLACE, 3/15/18


U.S. turkey production was down in January on a per day slaughter basis, most likely responding to an ongoing price slump tied to sluggish demand, according to USDA’s latest Livestock, Dairy and Poultry Outlook report.  

January 2018 production totaled 509 million pounds, a 2 percent increase from January 2017, but a 3 percent decrease based on a per day slaughter basis.

Turkey hatchery data for January is below the same period in 2017, indicating lower production totals in the coming months. Eggs hatched and poult placements fell by over 4 and 2 percent, respectively, compared with a year earlier, and eggs in incubators to start February were down 5 percent.

The declines suggest that producers are likely responding to reduced returns brought about by low wholesale prices. The 2018 turkey production forecast is 5.975 billion pounds, fractionally below 2017 levels.

Whole hen prices remain below historical averages
Wholesale whole-hen frozen turkey prices remain low in comparison to past years. The latest price data, covering the first full week of March 2018, shows whole hen prices at just under 80 cents per pound, well below early-March prices for the past several years. The low wholesale prices indicate that turkey meat demand has not kept pace with recent production. Turkey prices are expected to average 86 cents to 91 cents per pound for the year, about 8 percent below the annual average price for 2017.

Exports increased again in January
January turkey exports were 15 percent higher than a year earlier, totaling 49 million pounds. Mexico remains the largest destination for U.S. turkey shipments, with 34 million pounds shipped in December, or 70 percent of all U.S. shipments.
Exports are expected to reach 635 million pounds in 2018, a 10 million pound decrease since last month’s forecast, but a 2 percent increase over 2017.

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