After enduring a difficult 2024 marked by disease outbreaks and weak demand, the U.S. turkey industry experienced a market turnaround in 2025.
U.S. turkey companies produced 6.03 billion pounds of live turkey in 2025, according to estimates from WATT Poultry USA's Annual Top Turkey Company survey. This represents a 5.6% decrease from the 6.39 billion pounds produced in 2024 and an 11.3% decrease from the 6.8 billion pounds produced in 2023.
According to the U.S. Department of Agriculture’s (USDA) January 2026 Poultry Slaughter report, almost 191 million turkeys were slaughtered in 2025, a 3.7% decrease from 2024.
First half challenges led to price improvements
For turkey integrators, the first half of 2025 was difficult due to weak demand, even as domestic supplies fell to their lowest levels since the 1980s, according to Mark Jordan of LEAP Market Analytics. Producers also faced ongoing disease challenges, including highly pathogenic avian influenza (HPAI) and avian metapneumovirus (AMPV).
Turkey production totaled about 2.33 billion pounds in the first half of 2025, down 9.7% from 2024, according to USDA ERS data. However, market conditions shifted sharply in the second half of the year, with wholesale prices rising well above seasonal norms. Frozen hens exceeded $1.50 per pound and briefly reached $1.60, while fresh tom breast meat hit a record $6.71 per pound in September.
By October, wholesale prices were up 75% year over year to $1.71 per pound, according to Purdue University. Combined with strong prices for wings and dark meat and lower feed costs, profit margins surged.
Top five producers: only Butterball increased production
Among the top five turkey producers, only Butterball increased production in 2025, reaching about 1 billion live pounds, while others saw declines or no change.
Seaboard Corporation, which owns 52.5% of Butterball, reported breaking even in Q1 2025 despite a 9% production increase and slightly higher sales ($375 million). In Q2, net income rose to $17 million, up 113% year-over-year, driven by higher sales volumes. Butterball also closed its Jonesboro, Arkansas, processing plant in early 2025.
Jennie-O (Hormel Foods) ranked second with steady production at 930 million pounds. Hormel announced plans to sell its Melrose, Minnesota, processing plant and Swanville feed mill, with the deal expected to close by April 2026.
Cargill ranked third with 644 million pounds, down 18%, and closed its Springdale, Arkansas, facility in August 2025, later sold to Tyson Foods.
Farbest Foods (602 million pounds) and Prestage Farms (420 million pounds) rounded out the top five.
Some integrators cut back production
Difficult market conditions in 2024 and early 2025 led to major operational changes. Foster Farms closed its Turlock, California, plant (later sold to Diestel), while Perdue cut second-shift production in Indiana. Butterball and Cargill also closed facilities. These actions reduced U.S. turkey slaughter in 2025 and are expected to further impact 2026 volumes.
Disease pressures persisted
HPAI remained a major issue in 2025, with over 3.8 million turkeys depopulated, slightly exceeding 2024 levels. AMPV also disrupted production by reducing hatchability and limiting future supply, though its full impact is unknown. Together, these disease pressures tightened supplies, with per capita availability down about 8% year-over-year and supporting higher prices.
Demand shifted from weakness to resurgence
Despite tight supplies, demand was weak early in 2025, driving prices below $1 per pound for whole hens and under $2 for breast meat. However, demand rebounded by midyear, with strong recovery in whole birds and breast meat ahead of the holiday season. Ground turkey stood out as a consistent performer throughout the year due to its affordability and versatility.
Looking ahead to 2026
The industry enters 2026 in a stronger but transitional position, supported by high prices, tight supplies and lower feed costs. However, production remains constrained due to earlier disease impacts, with USDA projecting about 4.98 billion pounds. Ongoing supply tightness and uncertain demand response to high prices are expected to make 2026 another dynamic year for the sector.
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