US broiler sector leans on efficiency as margins tighten - CoBank
Cheap feed, rising output — but broiler profits slip
10 April 2026
1 minute read
By: A stockpile of US corn continues to benefit animal feeders, specifically the US broiler segment, the animal protein sector with the quickest production cycle, according to a recent market report from CoBank. However, even with feed costs sitting about 20% below year ago levels to end 2025, broiler production costs at the end of 2025 were still 10% to 15% higher than pre-COVID-19 inflation-era levels.
These higher costs have kept the industry laser-focused on efficiencies. The broiler hatchery supply flock was down 2% year on year in February, yet eggs hatched were up 2% year on year from the productive flock during January. This highlights just one of the areas where data tells us the industry is continually working towards doing more with less.
With these improved efficiencies, broiler slaughter totals are running about 4% higher than the same period a year earlier through the first 10 weeks of 2026. Despite these improvements, flock health, hatchability and mortality continue to be concerns, and we expect these challenges to dampen broiler output growth prospects in 2026.
Processor margins were exceptionally strong for the first half of 2025 as a result of favorable feed costs and historically strong broiler meat prices. But during the fourth quarter, oversupply issues resulted in softening broiler values. Winter storms and rising liveweights have contributed to excess market availability and the market has yet to regain composure. Breast meat values have remained unseasonably flat at about $1.50 per lb. – 15% below last year’s annual average as of late. While margins have been pressured in recent months, the lower values are expected to spur marketing for chicken features in both the restaurant and grocery segments for spring and summer.
