Broiler and Feed Demand Outlook Last week’s USDA Chicken and Egg report showed that broiler-type chicks hatched in February were 102.1 percent of last year. Market predictions for March are around 101.5 percent year over year, and expectations are that hatching will continue at that pace through this month. USDA is projecting second quarter 2019 hatching will be 102.3 percent of the same quarter in 2018. The end-of-year slaughter numbers released this week show broiler slaughter in 2018 at 103 percent of 2017 and total live weight slaughter at 101.75 percent with birds averaging 6.26 pounds. WPI estimates feed utilization by broilers in 2018 at 1.431 billion bushels of corn and 15.417 MMT of soymeal. Assuming bird sizes remain where...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.