Trends & Trials in Broiler-Heavy Minnesota Poultry Market
Central Minnesota boasts a robust poultry industry, largely driven by integrations with nearby packaging and processing facilities. Broiler production reigns supreme in this region, with contract growers raising chickens for local processing giants. Conversely, turkey production thrives southwest of the region.
Economic Impact: A Double-Edged Sword
Minnesota maintains its top ranking in U.S. turkey production, boasting over 660 turkey farms and generating a staggering $1 billion economic impact. However, the trickle-down effect extends beyond turkeys. The poultry value chain, including broilers, supports roughly 26,000 jobs in Minnesota.
Market Fluctuations and Profitability
While lower commodity prices generally benefit contract broiler growers by reducing feed costs, recent inflation presents a challenge. Many broiler operations function as secondary income sources for families involved in row-crop farming or other agricultural activities. The key to profitability lies in maintaining production efficiency and bird quality while navigating fluctuating poultry market conditions.
Challenges and Considerations
The past few years have been particularly difficult for growers. COVID-19 significantly impacted building material and chick costs, leading to a nearly 45% overall increase in expenses in the past four years. Integrators are working to retain their grower base by offering so-called "COVID relief payments" to offset these increased building costs and maintain production levels.
Dozens of new barns have been put up or explored annually in the past couple years in the area, despite the increased costs as producers attempt to meet the demand of expanded processing facilities while diversifying their operation.
Another significant concern is Highly Pathogenic Avian Influenza (HPAI). While Minnesota hasn't seen a case since July 2024, the entire poultry value chain remains vigilant. Outbreaks can necessitate flock size reductions, further impacting grower profitability.
Demand for Poultry Products
Poultry product demand, like most markets, experiences fluctuations. Egg prices for example have been particularly volatile since the pandemic. However, anecdotal evidence suggests a potential stabilization in egg prices since early 2022.
Interested in learning more about the Minnesota poultry market or how Compeer Financial can support your agricultural operations? Contact a team member and explore additional information on flexible funding here.
And if you need an appraisal on poultry facilities, contact your local Compeer appraiser. Our team has expertise in more than farmland – we monitor all aspects of agricultural valuations including the poultry value chain.