High feed prices affecting broiler, livestock production
By Ann Reus, FeedStrategy
February 17, 2021
China seeking variety of feed sources as it rebuilds its pig herd
Broiler feed prices are expected to be 7% to 20% higher this year than last year, which could result in a dip in broiler production in the second half.
The U.S. Department of Agriculture (USDA) expects a less than 1% increase in broiler production in the first half of 2021, and then, in the “second half of the year, we expect production to be down because of the higher feed costs,” said USDA Outlook Board Chairman Mark Jekanowski.
A decrease in production “would also support prices,” he said. USDA has added 3.5 cents per pound to its 2021 average broiler price forecast, now at 84.5 cents per pound – 15% more than in 2020.
Beef production forecast
Beef producers are also “looking at much higher feed costs,” Jekanowski said. “Demand has been strong, both domestic and export demand.”
USDA increased its beef production forecast by 350 million pounds to more than 27.5 billion.
“You have a lot of cattle right now in feed lots and, with high feed costs, there’s a lot of incentive to get them out of the feed lot and get those cows into the slaughterhouse so you don’t have to feed them anymore,” he said.
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