Despite the tailwind of growing consumer demand, the U.S. poultry industry is still contending with the impact of inflation on operations and the ongoing challenges of disease management.
That’s according to T.J. Wolfe, CFO of Wayne-Sanderson Farms, who was interviewed by City National Bank managing director Eric Viergutz who was sitting in as guest host for a recent episode of The Food Institute Podcast.
Together, they outlined how one of America’s largest chicken producers is adapting to today’s market while preparing for long-term growth.
Poultry Industry Demand for Affordable and Convenient Protein
Consumer behavior is evolving in ways that directly affect the poultry industry. Across the U.S., demand for protein continues to rise, fueled by health and wellness trends that encourage higher intake. While Americans already consume more protein than the global average, Wolfe sees room for even further growth.
Affordability remains as important as ever. Even though inflation has moderated compared to the past two years, shoppers are still watching grocery bills closely and seeking budget-friendly options when dining out.
Chicken has emerged as a go-to choice, offering both value and versatility.
Convenience is the third major driver, Wolfe said. With hectic schedules, consumers are turning to ready-to-cook and frozen products. The widespread adoption of air fryers has also elevated at-home chicken dishes, creating new opportunities for value-added prepared foods.
Poultry Industry Pressures from Inflation and Tariffs
Inflation hasn’t affected every aspect of the poultry industry equally. Wolfe noted that construction is one of the hardest-hit areas, with rising prices for steel, concrete, and labor making expansion more costly. With 24 complexes across seven states, Wolfe said Wayne-Sanderson must carefully manage capital spending.
On the other hand, moderating feed costs have brought some relief. After corn and soybean meal hit decade-high prices in 2022 and 2023, the past year has seen those prices fall, easing one of the company’s largest input costs.
Tariffs have played a more modest role. Because 95% of Wayne-Sanderson’s product is sold domestically, the company is insulated from many trade issues. Still, specialized equipment imported from Europe has faced higher costs, and exports such as chicken paws to China have been disrupted by shifting trade policies.
Poultry Industry Growth Fueled by Biosecurity and Technology
Wolfe noted that while the broiler sector has largely avoided severe outbreaks of highly pathogenic avian influenza this year, egg and turkey producers have struggled. Geography, strict protocols, and farm-level vigilance have helped Wayne-Sanderson mitigate risk.
Other diseases remain a challenge.
Metapneumovirus, for example, has lowered hatch rates and bird weights. With hatch rates dropping from the low 80s to the high 70s, even small shifts can significantly impact output. Close coordination between farmers and veterinarians is essential to safeguard flocks and prepare for emerging threats.
Looking ahead, Wolfe sees technology as the key to future efficiency. Artificial intelligence is already improving accuracy in bird identification, while digital tools give farmers deeper insights into daily operations. These innovations reduce costs and make poultry farming more attractive to younger generations, proving that agriculture and technology are increasingly interconnected.
