Broiler Production Higher and Exports Up

The increase is due in equal measure to an expected increase in the number of birds slaughtered and an increase in the average liveweight of birds. Exports in the first quarter are expected to total 1.25 billion pounds, a 22-percent increase from the previous year. The large year-over-year increase is attributable to bans by a number of countries on U.S. poultry products in the first quarter of 2004 due to avian influenza (AI) outbreaks.

Normally with only moderate increases in production and growth in exports and lower stock levels, prices of broiler products would be expected to strengthen. Prices for whole birds averaged 71.9 cents per pound in the first quarter, down from the previous year, but up over 5 percent from the fourth quarter of 2004. Prices for whole broilers are expected to gradually strengthen during 2005, but not until the fourth quarter will they exceed last year???s levels.

Turkey Estimates Reduced

The first quarter 2005 estimate for turkey production was reduced by 15 million pounds to 1.31 billion pounds, about even with production in the first quarter of 2004. Over the first 2 months of 2005, the number of turkeys slaughtered was down by 4 percent. This decrease in numbers has been offset by a 4-percent increase in the average liveweight to almost 29 pounds per bird. The turkey production estimate has also been reduced for the remainder of 2005, with the total for the year at 5.49 million pounds, down 90 million pounds from the previous estimate. The reduction in the number of turkeys being slaughtered is a reflection of the amount of turkey poults being placed for growout, which has been lower on a year-over-year basis for a number of months. Turkey exports over the first half of 2005 are expected to show considerable growth compared with the previous year. Like broilers, turkey exports in the first half of 2004 where held down by the bans on U.S. exports due to AI outbreaks

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