Market Trends of North America Poultry Feed Industry
Rising Demand for Poultry Meat Consumption
- According to the United States Department of Agriculture statistics, Mexico's poultry production was 3.89 million metric tons in 2023 and it is projected to reach 4.0 million metric tons in 2024, marking a three percent increase from 2023. This growth is attributed to eased grain and input costs, robust domestic demand, and the ongoing expansion of poultry farms. Despite prevailing high interest rates, the poultry sector is witnessing continued capital investment and expansion, driven by quicker returns on investment compared to the cattle and swine sectors. The Veracruz state of Mexico leads the chicken meat production, followed by Jalisco, Aguascalientes, Queretaro, and Chiapas. Collectively, these five states account for over 50 percent of Mexico’s poultry production and exhibit strong potential for poultry feed demand.
- In Canada, 2023 witnessed a rebound in poultry production and sales, driven by heightened demand and elevated product prices, as the industry recovered from the 2022 avian influenza outbreak. According to Statistics Canada, poultry sales surged by 7.7% year-over-year, hitting USD 4.5 billion in 2023. Concurrently, poultry farmers produced a collective 1.6 million metric tons of poultry meat. Notably, over 60% of Canada's chicken production hailed from Ontario and Quebec, underscoring these provinces as the nation's top consumers of poultry feed.
- Similarly, the rise of supermarkets and shopping malls has bolstered the retailing of chilled and frozen poultry products. As incomes rise and the working population expands, there's a growing demand for convenient, high-quality chicken products. Heightened health awareness among consumers is driving them to invest more in healthy meat products, further fueling market growth.
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United States Dominates the Market
- Poultry stands out as the top choice of meat for Americans, highlighting its crucial importance to the U.S. economy. As demand for poultry and its products surges in the U.S., efforts to enhance yields have intensified, leading to the adoption of scientific feeding practices. Furthermore, both the poultry and egg industries are heavily dependent on feed grains. As a result, the region's market is primarily driven by rising poultry production, growing concerns over animal health, and the increasing industrialization of livestock.
- According to the United States Department of Agriculture, the U.S. poultry industry leads globally, producing 20% of the world's poultry meat and making notable contributions to egg production. American consumption of poultry, encompassing broilers, various chicken types, and turkey, surpasses that of beef and pork. USDA data indicates Iowa as the top state for chicken production, trailed by Ohio, Indiana, Pennsylvania, and Georgia. Iowa, often referred to as the "chicken state," proudly hosts a poultry population of 54 million heads.
- The U.S. exports nearly 15% of its poultry meat production. In 2023, exports totaled 3.7 billion metric tons, valued at USD 4.9 billion, emphasizing the chicken industry's reliance on a robust and growing overseas market. U.S. chicken products are shipped to 150 countries worldwide, with Asian markets like China, Hong Kong, and Vietnam taking the lead, particularly for U.S. chicken feet or "paws," considered a delicacy. North American destinations for U.S. chicken exports include Mexico, Canada, Cuba, and Guatemala.
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