Top U.S. poultry processors are planning to expand production this year, reports Bloomberg. As prices for feed grains have plummeted, worrying farmers, processors are taking advantage of the lower costs. Also driving the expansion is increasing chicken consumption by U.S. consumers.
Leading processors are building new plants across the country. Costco predicts that its new Fremont, Nebraska, plant will process 100 million chickens per year. Tyson is breaking ground on a new processing plant in western Tennessee, and Sanderson Farms is building in eastern Texas. Communities have fought back against the construction of the new Costco and Tyson plants, arguing that the presence of an industrial processing facility will degrade their water and air quality.
Tyson reported record earnings last fiscal year. Analysts predict that Sanderson Farms and Pilgrim’s Pride will also see earnings gains this quarter. Meanwhile, per capita meat consumption in the United States will rise to a record of more than 92 pounds, according to the USDA.