As 2014 rushes closer to the end, most U.S. turkey producers find themselves in a pretty good situation. Gary Crawford has more.
“The nation’s turkey producers have several things to be thankful for this holiday season. The big thing right now is declining feed costs. For turkey producers, feed is about half the variable cost in producing them, taking them from stage to stage and ready for market. With corn and soybean meal prices plummeting, its beginning to show up in a turn around in production.
In the first quarter production was down 9% and in the second quarter down 4%. In the third quarter production was up 2.5% and we are looking for a stronger projection in the 4th quarter and continue into 2015.
Whole sale prices are higher and getting 10% more than last year. A lot of the parts prices are also higher, including drumsticks and wings.
Normally higher production brings on lower prices but right now stocks are down considerably. So prices may not decline until the stocks are built back up, and that may take a while since demand is up.
In 2013 the US exported 758 million lbs of turkey and this year it will reach 799 million. It’s forecasted for 820 million pounds next year.”