SALT LAKE CITY—When prices soared to $10 a dozen, consumers still bought eggs. And broiler chickens remain the most-consumed protein nationally.

Demand and prices for poultry products may be strong, but ongoing contraction in cattle markets, all-around high input prices and interest rates, plus economic inflation, present obstacles. Experts offered more context on these issues at a January workshop called “Understanding Livestock Markets,” where Virginia Farm Bureau Federation members joined thousands of other farmers at the American Farm Bureau Federation annual convention in Salt Lake City.

Bernt Nelson, an AFBF economist, said over the last few years drought and high supply costs led many farmers to market female cattle that typically would be held back for replacement, or breeding purposes. This resulted in an unusually high number of female cattle being placed on feed for market.

U.S. cattle inventory is the smallest in 73 years. Contraction in the market will likely continue into 2025, Nelson said, with potentially record cattle and beef prices this year and next.

Domestic turkey inventory and production are up 3%, driving prices down—evidence of recovery in a sector hit hard by Highly Pathogenic Avian Influenza outbreaks in recent years.

“This tells us that our biosecurity measures are working,” Nelson said.

Broiler chickens are largely unaffected by HPAI, he added, and production is keeping pace with historically high demand.

Egg prices have dropped to about $1.71 per dozen on average, representing improvement in the egg sector from 2022’s HPAI outbreak. Continued avian flu presence and stagnant flock growth may increase prices later in the year.

In addition to high supply costs, interest expenses for farmers are up 43% from this time last year, limiting farmers’ ability to use credit.

Holly Cook, a National Pork Producers Council economist, said 2023 was the “worst year financially” for pork producers. Hog prices were not enough to offset high production costs.

“We saw continued rising feed costs in 2022, with a jump in 2023,” Cook said. “It takes more for the industry to make money today than it used to.”

Some relief in input costs brought prices down in recent months, and pork production is up despite disruptions.

And a bright spot, Cook said, was pork exports growing 7% last year.

“We’re not just shipping more pork,” she explained. “But we saw an increase in demand as the U.S. became more competitive globally.”

Media: Contact Nelson at 202-406-3643 or Cook at 202-464-3375.