Chicken and Turkey Meat Production

Business for Sale Industry Economics




Projected CAGR

2005 - 2021


2021 - 2027






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Positive trends in demand variables and near constant demand from poultry processors have been outweighed by the price of poultry meat declining over the five years to 2021.

However, increased demand for chicken as a substitute for other meats, particularly red meat, has also helped limit revenue declines.

In addition, increasing health consciousness among US consumers has boosted consumption of white meat in general.

However, in 2015, the price of poultry meat began to decline significantly as the price of feed plummeted.

As feed is the largest input cost for meat producers, the price of feed is directly tied to the price of meat, including poultry and substitutes, such as beef and pork.

This decline has made the industry more competitive.

Industry revenue has decreased at an annualized rate of 3.4% to $29.6 billion over the five years to 2021.


In many ways, the Chicken and Turkey Meat Production industry has remained relatively stable over the five years to 2021, despite significant volatility and falling revenue.

Chicken has remained the most consumed meat in the United States since surpassing beef in 1995.

Americans have become increasingly health conscious as more information about the unhealthy effects of red meat influences public opinion.

Consumers have increasingly gravitated toward white meat due to red meat’s reported links to heart disease and cancer.

While consumption of red meat has grown over the past five years, it still does not reach the high volume of poultry consumption.


Overall, poultry consumption has remained steady among Americans over the past decade, a positive indication for the Chicken and Turkey Meat Production industry.

Contract deals, through which virtually all poultry farmers raise birds, are more likely to be maintained long-term, given a positive outlook for the industry.

Per capita poultry consumption is forecast to increase at an annualized rate of 0.3% over the five years to 2026.

Still, growth in per capita disposable income will likely enable Americans to purchase more processed food products and dine out at restaurants more frequently.

This will likely help drive downstream demand from chicken processors and restaurants.

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This industry includes farms that raise chickens and turkeys for meat production.

Downstream meat processors and food producers supply farmers with chicks, feed and payment, according to contractual agreements.

Farmers provide growing facilities, animal care and agricultural expertise.

Revenue is recorded in the final prices that farmers receive per average weight of a live animal.

This industry excludes chicken egg production, poultry hatcheries and other poultry production.


According to research, the Chicken and Turkey Meat Production business have a high capital intensity, with $1.57 spent on capital expenditures for every $1.00 spent on labor in 2021.

Building and maintaining chicken houses, farm equipment, and feed facilities are among the key capital expenditures of starting a poultry farm. Farmers’ embrace of new technology is shown in the high degree of capital intensity.

The capital intensity rises progressively when farmers migrate to high-tech operations and the average farm size grows. The rising use of computerized climate-control systems for poultry housing sheds, sustainable energy techniques, and mechanical chicken catchers are examples of this trend.

Larger farms are more capital-intensive because they can afford to invest in more technological equipment to boost efficiency and yields.

Farm labor is needed to care for the birds, which includes regulating housing and food regulations, replacing litter, and occasionally catching runaway hens.

For poultry growers, labor is a modest and decreasing expense. Farmers are likely to invest more in production-enhancing technology during the next five years, increasing the capital-labor ratio.


Animal health concerns, feed price increases, demand for replacement meats, and weather patterns all contribute to the Chicken and Turkey Meat Production industry’s moderate revenue volatility.

Although the pricing agreements between integrators and producers differ from contract to contract, the revenue of poultry producers is primarily determined by the weight of live birds produced.

The cost of inputs and the occurrence of animal illnesses have an impact on efficient production. Feed price increases and avian flu outbreaks have both substantially affected productivity and cattle prices in recent years.

Changes in the price of substitute meats and other protein sources can also affect income. Consumer demand for chicken will certainly grow when the price of beef rises, resulting in increased chicken output.

Other recent animal ailments, such as mad cow disease and swine flu, have reduced consumer demand for red meat, resulting in higher profitability for poultry producers.

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