Current State of Poultry Farming in the United States (January 2026)

Poultry industry of the United States

1. Production Trends and Market Conditions

Broiler and Egg Production

As of January 2026, the U.S. poultry sector demonstrates overall production stability, particularly in the broiler segment. Broiler output continues to expand modestly, supported by strong consumer demand for poultry meat as a cost-effective animal protein and by relatively stable hatchery performance. Egg production conditions have improved compared with earlier periods of volatility, with supplies generally described as adequate to moderate across conventional and cage-free systems. Wholesale egg prices have softened, reflecting weaker market sentiment and balanced supply-demand dynamics.

Growth Trajectory

The U.S. poultry industry remains one of the most efficient and vertically integrated animal protein sectors globally. Growth in poultry meat production aligns with broader global trends, where poultry continues to outperform red meat due to shorter production cycles, feed efficiency, and favorable consumer perceptions related to health and sustainability.

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2. Major Structural Challenges

Highly Pathogenic Avian Influenza (HPAI)

Highly pathogenic avian influenza, particularly strains associated with H5 viruses, remains the most critical structural risk to U.S. poultry farming entering 2026. Recurrent outbreaks over recent years have resulted in substantial losses, particularly in the layer and turkey sectors. The depopulation of millions of birds has periodically constrained supply, contributed to price volatility, and increased uncertainty across production planning and long-term investment decisions.

Turkey production has been disproportionately affected relative to broilers, resulting in downward revisions of production forecasts and sustained upward pressure on turkey prices. The persistence of HPAI has reinforced the perception that disease risk is no longer episodic but rather a semi-endemic challenge requiring long-term structural adaptation.

Biosecurity and Disease Control

In response to ongoing disease pressure, biosecurity has become a dominant operational priority. Commercial producers have intensified controls on farm access, vehicle sanitation, worker movement, and interactions between domestic poultry and wild birds. Regulatory authorities and industry stakeholders have increasingly emphasized surveillance, early detection, and rapid depopulation protocols as core disease-management strategies.

In some regions, regulatory flexibility has been introduced to temporarily ease production constraints, particularly where disease-related supply shortages threaten food availability.

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3. Economic and Cost Dynamics

Feed Costs

Feed remains the largest variable cost in poultry production. Entering 2026, feed grain markets have stabilized relative to earlier inflationary peaks, providing partial cost relief to producers. Moderation in corn and soybean meal prices has improved margin conditions, particularly for integrated broiler operations with strong supply-chain coordination.

Labor, Energy, and Capital Costs

Despite improved feed economics, other cost pressures persist. Labor shortages, rising wages, and higher energy prices continue to affect both on-farm operations and processing facilities. Capital expenditures for new housing, automation, and processing capacity remain elevated due to higher interest rates and construction costs, constraining rapid expansion, especially for small and medium-scale producers.

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4. Trade, Markets, and Industry Structure

Domestic and Export Markets

Domestically, poultry consumption remains strong, supported by price competitiveness relative to beef and pork. Export performance, however, continues to face headwinds linked to disease-related trade restrictions and shifting global market conditions. Periodic bans from importing countries following disease detections have reduced export volumes and increased domestic supply pressure during certain periods.

Industry Coordination and Strategic Focus

Industry organizations and integrators have increasingly emphasized strategic planning focused on resilience. Key priorities include disease risk mitigation, supply-chain robustness, animal welfare compliance, and environmental sustainability. Industry forums and technical conferences in early 2026 highlight a collective effort to align production practices with long-term risk management and regulatory expectations.

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5. Technology and Innovation Outlook

Technological adoption is accelerating across U.S. poultry farming. Automation in processing, sensor-based monitoring in housing systems, precision feeding, and data-driven health surveillance are increasingly viewed as essential tools for maintaining productivity under tightening labor and biosecurity constraints. Digitalization and artificial intelligence-based decision support systems are expected to play a growing role in disease detection, performance optimization, and welfare monitoring.

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6. Overall Assessment (January 2026)

1. Production status: Broiler production remains robust; egg markets show improved balance; turkey production remains constrained.

2. Primary risks: Persistent HPAI pressure represents the dominant structural threat to stability and growth.

3. Economic conditions: Feed cost moderation supports margins, while labor, energy, and capital costs remain restrictive.

4. Outlook: The U.S. poultry sector enters 2026 with cautious optimism, supported by demand strength and technological progress, but tempered by ongoing disease risk and structural cost challenges