In a recent report from the Steiner Consulting Group released on March 7th, 2023, the U.S. turkey industry marked a notable milestone: its first annual increase in per capita consumption since 2016. However, this uptick came with a tinge of disappointment, as analysts highlighted concerning trends within the industry.
Despite a promising start with consumption figures surpassing those of the previous year’s first half by a significant margin, the latter part of 2023 witnessed a sharp decline in turkey consumption, traditionally the strongest period. This decline was mirrored by a simultaneous decrease in prices and profits across the industry.
Of particular concern was the substantial reduction in profits for cutting up and deboning, halving from the summer of 2022 to the summer of 2023. Even with lower prices, the fourth-quarter whole bird consumption failed to pick up momentum, registering the lowest figures since 1980.
As the industry navigated the opening weeks of 2024, a strategic response was evident: a reduction in turkey hatchery output, with farm placements experiencing an 8% decrease from the previous year. Analysts foresee this adjustment potentially maintaining production levels similar to those of 2023, signaling a proactive approach to the challenges ahead.
