In 2023, the poultry industry faced significant challenges, but there were also notable bright spots for consumers. Despite grappling with issues like the avian influenza and widespread plant closures, poultry products became more affordable for the average shopper.
Jada Thompson, an expert from the University of Arkansas’s agricultural economics division, provided insights into the year’s dynamics. She noted a slight improvement in the avian flu situation compared to the previous year, but also pointed out that while there was a robust placement of birds, the slaughtering of broilers experienced a dip. The closure of numerous plants across the country further strained the industry’s capacity. Nevertheless, the year ended with an uptick in overall poultry production.
The avian influenza, known as HPAI, remained a pressing concern. By December, it had devastated 426 commercial and 586 backyard flocks in the U.S., leading to the loss of over 72.5 million birds. Arkansas felt the impact with a significant rise in cases, witnessing a loss of 255,100 commercial birds in 2023, compared to 56,000 the previous year.
Thompson highlighted the industry’s resilience, especially in the early months of the year. However, by August, challenges, including plant closures and the persistent HPAI, began to take a toll.
To address these challenges, a congregation of experts from across the Americas assembled in Arkansas in October for the International Avian Influenza Summit, aiming to strategize and address the HPAI crisis.
Interestingly, despite the industry’s hurdles, consumers saw a silver lining in the form of reduced prices for poultry products. Thompson attributed this decline in prices to an improved supply chain. Notably, after witnessing a staggering 145% increase in egg prices in 2022, 2023 saw a 29% drop. Similar trends were observed in the prices of broilers and turkeys.
Arkansas, a key player in turkey production and ranking third nationally, played a crucial role in this market shift. The state’s consistent turkey production ensured an ample supply, contributing to the decreased prices, which was particularly beneficial for consumers during festive periods.
However, the year was not without its setbacks. The closure of several processing plants left numerous growers in a challenging position. Many had to seek new contracts or contemplate exiting the poultry business altogether. Such shifts had broader implications, affecting local communities and stakeholders. Despite these challenges, Thompson remains hopeful about Arkansas’s position in the broiler production sector, anticipating its continued prominence in the national poultry industry.
Arkansas, a prominent turkey producer ranking third nationally, played a pivotal role. The state’s robust turkey production ensured ample supply, consequently driving down prices, especially benefiting consumers during the festive season.
The Plant Closure Conundrum
However, the year wasn’t without its challenges. Plant closures left many growers in limbo, compelling some to seek new contracts or exit the poultry domain entirely. Such shifts rippled through local communities, affecting lenders and stakeholders alike.
Nevertheless, Thompson remains optimistic about Arkansas’s pivotal role in broiler production, forecasting its continued dominance in the national poultry landscape.
