Lower feed costs and rising production are not enough to offset pressure on industry profitability.
The surplus of U.S. corn continues to support livestock producers, particularly the U.S. broiler sector — one of the fastest-turning segments in the animal protein industry. This was highlighted in CoBank’s latest market report. However, although feed costs by the end of 2025 remained about 20% lower than a year earlier, total broiler production costs were still 10–15% above pre-pandemic levels seen during the inflationary period.
Ongoing price pressure has increased the industry’s focus on improving operational efficiency. In February, the broiler breeder flock in hatcheries declined 2% year-over-year, while the number of eggs set in January rose 2% due to stronger flock productivity. These figures reflect the sector’s continued drive to generate higher output with limited resources.
As a result of improved efficiency, broiler slaughter volumes during the first 10 weeks of 2026 were approximately 4% higher than during the same period last year. Nevertheless, persistent challenges related to flock health, hatchability, and mortality continue to limit the potential for further production growth in 2026.
Processor margins remained exceptionally strong in the first half of 2025 thanks to favorable feed costs and historically high poultry meat prices. However, conditions changed in the fourth quarter, as oversupply led to weaker prices. Winter weather factors and heavier bird weights added further pressure to a market that has yet to fully rebalance.
Breast meat prices remain stable at around $1.50 per pound, roughly 15% below last year’s average level. Despite the recent margin squeeze, the current pricing environment is expected to support aggressive chicken promotions in foodservice and retail channels during the spring and summer season.
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