US broiler sector squeezes efficiencies as margins face pressure
Feed cost gains offset by oversupply, flock concerns and softer prices
26 May 2026
1 minute read
By: A stockpile of US corn continues to benefit animal feeders, particularly the broiler segment, which has the quickest production cycle of any animal protein sector, according to CoBank's quarterly report. Even with feed costs sitting about 20% below year-ago levels at the end of 2025, broiler production costs were still 10% to 15% higher than pre-COVID-19 inflation-era levels, keeping the industry focused on efficiencies.
The broiler hatchery supply flock was down 2% year-over-year in February, yet eggs hatched were up 2% year-over-year from the productive flock in January, reflecting the industry's drive to do more with less. Broiler slaughter totals through the first 10 weeks of 2026 were running about 4% higher than the same period a year earlier. Despite those gains, flock health, hatchability and mortality remain concerns that CoBank expects to dampen output growth prospects in 2026.
Processor margins were exceptionally strong in the first half of 2025, driven by favourable feed costs and historically strong broiler meat prices. But oversupply issues in the fourth quarter softened broiler values, and winter storms and rising liveweights have contributed to excess market availability. Breast meat values have remained unseasonably flat at around $1.50 per lb., about 15% below last year's annual average. While margins have been under pressure in recent months, the lower values are expected to spur chicken features in both restaurant and grocery segments heading into spring and summer.
