Poultry Industry News, Comments & More

Turkey Week

04/02/2021

Weekly Turkey Production and Prices April 2nd 2021

 

Poult Production and Placement:

The March 16th 2021 edition of the USDA Turkey Hatchery Report, issued monthly, documented 27.0 million eggs in incubators on March 1st 2021 (26.2 million eggs on February 1st 2021) and down 3.4 percent (0.9 million eggs) from March 1st 2020.

 

A total of 21.4 million poults were hatched during February 2021 (21.5 million in January 2021), and representing a decrease of 5.2 percent (1.1 million poults) from February 2020.

 

A total of 19.6 million poults were placed on farms in the U.S. in February 2021, (19.8 million in January 2021), and 5.0 percent less than in February 2020. This suggests disposal of 1.8 million poults during the month (1.7 million in January 2021). Assuming all tom poults were placed, up to 16.8 percent of February-hatched hen poults or 8.4 percent of all February-hatched poults may not have been reared. This is an unsubstantiated estimate in a fluctuating demand for processed toms and hens in a COVID-affected market. (See relative numbers of hen and tom poults processed under Production Data below).

 

For the twelve-month period March 2020 through February 2021 inclusive, 272.3 million poults were hatched and 249.4 million were placed. This suggests disposal of 23.0 million poults. Assuming all tom poults were placed, (representing a broad assumption as above), 16.9 percent of hen poults or 8.4 percent of all poults hatched during the period were not placed.

 

To be updated in mid-April 2021 following release of monthly USDA data

 

Turkey Production:

The April 2nd 2021 edition of the USDA Turkey Market News Report (Vol. 68: No.13) confirmed the following provisional data for turkeys slaughtered under Federal inspection:-

  • For the processing week ending March 27th 2021, 1.773 million young hens were slaughtered during the processing week at a live weight of 17.4 lbs. (last week 1.880 million hens at 16.1 lbs.). During the corresponding week in 2020, 1.617 million hens were processed, 17.7 percent less than the current week. Ready-to-cook (RTC) hen weight for the week attained 24.8 million lbs. (11,262 metric tons), 15.3 percent more than the corresponding processing week of 2020. Dressing percentage was a nominal 80.5. In 2021 RTC hen production attained 271.5 million lbs. (123,426 metric tons), 5.4 percent less than for YTD 2020.

 

  • For the processing week ending March 27th 2021, 2.244 million toms were slaughtered at 45.6 lbs, compared to 2.244 million toms processed during the previous week at 44.2 lbs.  For the corresponding week in 2020, 2.426 million toms were processed, 7.5 percent less than in the past week. Ready-to-cook tom weight for the week attained 82.4 million lbs. (37,459 metric tons), 3.6 percent less than the corresponding processing week in 2020.  Dressing percentage was a nominal 80.5 percent. In 2021 RTC tom product attained 1,023.5 million lbs. (465,235 metric tons), 8.0 percent less than for YTD 2020.

 

  • The National average frozen hen price during the past week was 117.0 cents per lb., up 5.0 cents per lb. from the previous week and up approximately 30 cents per lb. from the three-year average. The following prices rounded to nearest cent were documented for domestic and export trading on April 2nd 2021:-

 

Product

cents per lb.

Change from previous Week (%)

Frozen hens

       117

                      +4.5

Frozen toms

       108

                      +3.8

Fresh hens

       128

                      -1.5

Fresh toms

       130

                      +0.8

Breasts 4.0-6.5 lb. (frozen)

       140

                       -4.8

Breasts (B/S) tom

       135

                       -2.2

Drums (toms for export)

         96

                       -1.0

Wings (V-cut tom)

         86

                      +2.4

Wings (V-cut hens)

       205

                     -20.8

Thigh Meat (frozen for export)

       130

               No new quotation

Mechanically Separated (export)

         54

                       +1.9

 

Inventories:

On March 29th 2021 cold storage holdings at selected centers amounted to 65,688 lbs., 0.7 percent less than the inventory of 66,133 lbs. on March 1st 2021.

 

The March 22nd 2021 edition of the USDA Cold Storage Report issued monthly, documented a total turkey stock of 320.1 million lbs. (145,518 metric tons) on February 28th 2021, equivalent to 2.7 weeks of current production and down 6.0 percent compared to the inventory on February 29th 2020. This value was 6.2 percent above the January 2021 level. This increase is consistent with season and denotes an imbalance between supply and the combination of domestic demand and exports.

 

The Whole Turkey category representing 41.8 percent of total storage of 320.1 million lbs. on February 28th 2021 was 1.9 percent higher than the inventory on February 29th 2020. Tom carcasses in storage increased by 9.8 percent from February 29th 2020 to 82.5 million lbs. on February 29th 2020. Hen carcasses in storage decreased by 8.7 percent from February 29th 2020 to 51.4 million lbs. on February 28th 2021.

 

The “Other” and “Unclassified” categories collectively amounted to 111.6 million lbs. or 34.8 percent of inventory on February 28th 2021. The magnitude of these two non-specified categories suggests that the USDA should attempt to classify product more accurately as to specific product.

 

February 2021 Production

According to the USDA Poultry Slaughter Report released on March 24th 2021 covering, February 2021 comprising 20 working days, 15.6 million young turkeys were processed. (8.5 percent less than February 2020); live weight attained 522,972 thousand lbs. (6.0 percent less than February 2020); Average live weight was 33.5 lbs. (2.7 percent more than February 2020); RTC attained 417,224 thousand lbs. (down 6.1 percent from February 2020) with a yield of 79.8 percent. The proportion of frozen product in January 2021 attained 37.9 percent of total RTC produced. In February 2021 ante-mortem condemnation attained 0.32 percent of live weight, (0.27 in February 2020). In February 2021, 1.3 percent of RTC weight was condemned (1.4 percent in February 2020)

 

Comments:

Please review comments in the Weekly Broiler Report and the year-to-date export data under the Statistics Tab.

 

The USMCA has been in effect since July 1st. The U.S. turkey industry shipped 173,544 metric tons or 62.6 percent of all turkey exports to Mexico, valued at $389 million during 2018. In 2019 Mexico received 176,789 metric tons representing 60.9 percent of turkey exports valued at $427 million. Thailand commenced importing raw turkey effective January 1st 2021 after an avian influenza embargo was placed on the U.S. allowing only cooked turkey in 2015. During 2020 Mexico imported 166,771 metric tons of turkey products valued at $379 million with a unit value of $2,273. During 2020 China imported 17,260 metric tons of turkey products with a value of $28.7 million representing a unit value of $1,663 per metric ton.


 
Copyright © 2021 Simon M. Shane