Emily Carter
Chicken is a major global industry, with 25.8 billion chickens in the world in 2021, up from 14.38 billion in 2000. The leading chicken producers are the US and China, which in 2021 accounted for a third of global poultry production. The US benefits from competitive production structures, extensive domestic feed resources and high price competitiveness thanks to advancements in poultry genetics. China's output has been supported by large investments in production capacities, process optimisation and diversification, in line with the country's goal for more integrated food production and improved food security. Other leading chicken-producing countries include Brazil, Russia and Japan.
| Characteristics | Values |
|---|---|
| Leading chicken producers in 2021 | US and China |
| Percentage of global poultry production by US and China in 2021 | One-third |
| Reasons for US's leading position | Competitive production structures, extensive domestic feed resources, high price competitiveness due to advancements in poultry genetics, and favorable climate conditions |
| Reasons for China's leading position | Large investments in production capacities, process optimisation, and diversification |
| Other leading chicken-producing countries | Brazil, Russia |
| Leading chicken-producing states in the US | Georgia, Alabama, Arkansas, North Carolina, and Mississippi |
| US poultry production growth from 2020 to 2023 | 2.97% |
| China poultry production growth from 2020 to 2023 | 1.90% |
| Brazil poultry production growth from 2020 to 2023 | 6.43% |
| US per capita consumption of broiler meat in 2022 | 96.9 pounds |
| Top exporters of broiler meat | Brazil (4.6 million metric tons) and US (3.36 million metric tons) |
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What You'll Learn
Cargill Meat Solutions: the largest poultry company in the US
Cargill, Incorporated, founded in 1865 by William Wallace Cargill, is an American multinational food corporation based in Minnetonka, Minnesota. Cargill Meat Solutions is the largest poultry company in the US. It is the largest privately held company in the United States in terms of revenue.
Cargill entered the meat-processing business in 1979 with the purchase of beef processor MBPXL (later Excel). The division expanded into turkey, food service, and food distribution businesses and is now known as Cargill Meat Solutions. In 1986, Cargill began operations in Venezuela through a partnership with the Possenti family's Mimesa C.A. to form Agroindustrial Mimesa in Maracaibo, which manufactures flour and pasta.
In 1998, Warren Staley became chief executive and continued to expand the company. He pursued a new strategy that shifted away from an asset-intensive commodities company to a solutions-oriented enterprise. By 2002, Cargill had over $50 billion in annual sales, twice the amount of its closest rival, Archer Daniels Midland, and had 97,000 employees running more than 1,000 production sites in 59 countries. Cargill Meat Solutions acquired Milwaukee Emmpak in 2003 and merged it with Taylor Packing Co., which it had purchased in 2001. In 2006, Cargill Meat purchased Fresno Meats.
Cargill has a large financial services arm that manages financial risks in the commodity markets for the company. In 2003, it spun off a portion of its financial operations into Black River Asset Management, a hedge fund with about $10 billion in assets. Cargill also has operations in 70 countries and is partnering with farmers and customers to grow and produce more food with less environmental impact. The company is working to reduce emissions in its operations and scale regenerative agriculture to build a more sustainable and resilient food system.
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Pilgrim's: one of the largest poultry producers in the US
The United States is one of the top chicken producers in the world, alongside China, Brazil, and Russia. Within the US, some of the leading chicken-producing states include Georgia, Alabama, Arkansas, North Carolina, and Mississippi. These states benefit from a combination of favourable climate conditions, expansive agricultural land, and well-established poultry industries. The US chicken industry primarily focuses on broiler chickens, which are raised for their meat, while egg-laying hens are a separate segment.
One of the largest poultry producers in the US is Pilgrims. The company benefits from the country's competitive production structures, extensive domestic feed resources, and high price competitiveness, thanks to advancements in poultry genetics. Pilgrims have also likely committed to the "Better Chicken Commitment", an initiative that requires improved growing conditions, the breeding of slow-growing breeds, and humane slaughter techniques.
Pilgrims' success is also influenced by the US's strong position in the international poultry market. The country exports significant quantities of chicken products worldwide, benefiting from increasing global demand driven by population growth and changing dietary preferences. This demand has led to a focus on maintaining price competitiveness, although rising chicken prices may impact this in the short term.
Avian influenza has also impacted the US poultry industry, affecting supply and prices, and ultimately hurting demand. However, the impact of avian influenza on broiler production has been limited, and the industry expects production growth in 2024.
Overall, Pilgrims' position as one of the largest poultry producers in the US is supported by the country's leading role in global poultry production and export, as well as its ability to adapt to market demands and challenges.
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Hormel: one of the biggest poultry producers in the US
Founded in 1891 by George Hormel in Austin, Minnesota, Hormel Foods is one of the biggest poultry producers in the US. The company began as a small meat business, with Hormel handling meat production and his partner, Albert Friedrich, managing retail. Over the years, Hormel Foods has expanded and diversified its product offerings, becoming a leading player in the poultry industry.
Hormel Foods has a long history of innovation, with its founder, George Hormel, adopting the mantra, "Originate, don't imitate". This mindset led to the creation of America's first canned ham in 1926, and soon after, the introduction of a canned chicken product line in 1928. The company continued to develop new products, such as the Hormel Flavor-Sealed Ham, and successfully promoted them through radio advertisements in the 1930s.
In the 1980s, Hormel faced challenges due to the recession, which impacted the meatpacking industry as a whole. However, the company persevered and continued to expand its poultry offerings. In 1988, Hormel Foods acquired Chicken by George, adding to its range of chicken products. The company also introduced microwaveable non-frozen products, such as microwave bacon, and stuffed hot dogs under the Frank 'n Stuff brand.
Today, Hormel Foods offers a wide range of chicken products, including fully cooked chicken breasts, sliced chicken, and chicken strips. Their chicken products are known for their excellent flavor, texture, and appearance, and are used in various dishes such as sandwiches, wraps, salads, burritos, and soups. The company prioritizes food safety and animal welfare, working closely with partners who supply the animals used in their products to implement improved handling practices and controlled-atmosphere stunning systems.
Hormel Foods has also demonstrated a commitment to corporate responsibility, integrating acquired companies into its supply chain to ensure they meet their sustainability and ethical standards. The company has set additional standards for broiler chickens, working towards improved environments, enhanced enrichments, and better handling practices to ensure the welfare of the animals in their supply chain.
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Brazil: the second-largest producer of chicken meat
Brazil is the world's second-largest producer of chicken meat. In 2021, there were 25.8 billion chickens worldwide, up from 14.38 billion in 2000. Brazil and the United States are the top exporters of broiler meat, which refers to chickens produced solely for meat. In 2022, Brazil exported about 4.6 million metric tons, while the US exported 3.36 million metric tons.
Brazil's chicken meat production has been growing steadily. Between 2020 and 2023, it saw a 6.43% increase in tons produced for poultry farming, compared to a 2.97% increase in the US and 1.90% in China. This growth has contributed to Brazil's position as a leading exporter of chicken meat.
Brazil's success in the chicken meat industry can be attributed to several factors. The country has favourable conditions for poultry farming, including suitable climate and abundant agricultural land. Additionally, Brazil has well-established poultry industries with efficient production structures and access to domestic feed resources. These factors enable Brazil to produce large quantities of chicken meat for both domestic consumption and export.
Brazil's poultry industry also benefits from its price competitiveness. The country's advancements in poultry genetics and production processes contribute to efficient and cost-effective chicken meat production. This price competitiveness is a key advantage in the global market, particularly when exporting to price-sensitive regions.
Brazil's position as the second-largest producer of chicken meat highlights the country's significant contribution to meeting the rising global demand for chicken. With population growth and changing dietary preferences, Brazil's efficient and expanding poultry industry plays a crucial role in supplying chicken meat to both domestic and international markets.
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US chicken exports: the US ranks second globally
The United States is one of the top chicken producers in the world, alongside China, Brazil, and Russia. In 2021, the US and China represented a third of global poultry production. The US benefits from competitive production structures, extensive domestic feed resources, and high price competitiveness due to advancements in poultry genetics.
The US chicken industry is primarily focused on broiler chickens, which are raised for their meat, while egg-laying hens are a separate segment of the poultry industry. Some of the leading chicken-producing states in the US include Georgia, Alabama, Arkansas, North Carolina, and Mississippi. These states have a combination of favorable climate conditions, expansive agricultural land, and well-established poultry industries, allowing them to produce large quantities of chicken for both domestic consumption and export.
The US plays a significant role in the international poultry market, exporting substantial amounts of chicken products worldwide. In 2021, US poultry production increased by 1.7% as producers sought to meet growing domestic and foreign demand for chicken meat. According to the US Department of Agriculture (USDA), broiler production is expected to grow in 2024, despite tightening global supply and strong demand.
However, rising chicken prices will reduce the price competitiveness of US broiler exports, which are largely destined for price-sensitive markets. Additionally, declining inventories of broiler-type laying chickens, weak hatchery data, and lower average weights since the start of 2022 are major constraints to stronger short-term output growth. The outbreak of Highly Pathogenic Avian Influenza (HPAI) in 2022 also negatively impacted table-egg layer and turkey flocks, affecting supply and prices and ultimately hurting demand.
Despite these challenges, the US remains the second-largest chicken producer and exporter globally, and with the continuing domestic protein supply growth, the industry is poised for another strong year in 2025.
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Frequently asked questions
The United States is the world's biggest producer of chicken meat, with production reaching 20.6 million tons in 2021.
Tyson Foods, of the United States, slaughters 1,900 million birds annually, making it the largest producer of broiler meat in the world.
China is the second-largest producer of chicken meat in the world. In 2021, chicken meat production in China was 14.7 million tons.
