Ultimate magazine theme for WordPress.

Demand, higher prices increase the value of poultry – Picayune Item

By Susan Collins-Smith

MSU expansion service

RAYMOND, miss. Strong consumer demand for chicken is part of the equation that resulted in the output value of the Mississippi poultry industry increasing nearly 40% in 2021.

The commodity held first place among all of the state’s agricultural commodities with an estimated value of $ 2.65 billion. 2021 marks the 27th straight year poultry tops Mississippi’s list of production values. Final figures will be released by the US Department of Agriculture in  -ril.

Higher prices also influenced this year’s production value.

“Demand in both grocery stores and restaurants has been strong,” said Josh M -les, an agricultural economist with the Mississippi State University Extension Service. “It’s also important to remember that broiler prices in 2020 were very low. So the big increase in the price and value of production in 2021 is due to stronger demand for chicken and higher prices. But the comparison with low values ​​in 2020 is also driven. “

The poultry industry is divided into three segments: broilers, chickens and eggs. Broilers are valued at $ 2.42 billion, up 43% from 2019. The estimated value for chickens producing table eggs is $ 2.7 million, up 33% from last year. Eggs are valued at $ 235 million, up 5% from 2019.

In 2020, the value of eggs rose sharply as prices rose due to production challenges and supply chain issues due to the impact of COVID-19. Even higher annual prices contributed to the increase in egg value for 2021.

“Previous production levels of eggs in 2021 were actually slightly lower than 2020 levels, but the higher prices offset this lower production,” M -les said.

Persistent challenges related to COVID-19 include shortages in processing plants and supply chains, said Tom Tabler, poultry specialist at Extension.

“Keeping workers in the plants is a big challenge because government support is structured for many individuals,” he said. “Additionally, there is a shortage of truck drivers across the country and the poultry industry needs feed truck drivers, live trucks and drivers to get the finished product from the processing plants to a destination.”

Business costs are also increasing. Poultry farmers always have the grain prices in view, because 70% of the production costs are for feed.

“Grain prices have been much higher this year due to pressure from export markets,” said Tabler. “The prices we see in the futures markets are the highest we’ve seen in several years and they are certainly enough to keep the industry informed.”

In recent years, the poultry industry has suffered property damage from tornadoes, hurricanes, and other natural disasters that have impacted insurance rates and coverage.

“Many insurance companies have stopped insuring poultry farms or raised tariffs significantly because of damage from natural disasters,” said Tabler. “In addition, soaring steel and lumber prices have driven the cost of building new poultry houses so high that it’s difficult to make profitable.”

Although producers faced several problems in 2021, disease was not one of them. Strict and consistent biosecurity protocols have protected the industry from avian flu outbreaks while many other countries are gr -pling with the virus.

Tabler said the industry is facing a number of challenges but is optimistic about 2022.

“Hopefully the supply chain problems will continue to resolve on their own and steel and lumber prices will get a little more reasonable,” he said. “I suspect the problems with the processing plant and the lack of truck drivers will persist for a while.

“However, the demand for chicken is strong both domestically and in the export market. Much of the world is still gr -pling with the effects of African swine fever and chicken is a natural choice to fill the void created by lower pork supply. “

Comments are closed.

%d bloggers like this: