GEORGETOWN — Data from the Delmarva Chicken Association (DCA) suggests chicken growers in the region are experiencing an industry shift one chicken at a time.
The change meant several decreases in the bottom line for farmers in the area. In 2022, farmers hit a record $5 billion in chicken production based on wholesale value. The new report cited a 14.6% decrease in the wholesale value of chicken produced, reaching $4.4 billion for 2023, adjusted for inflation. Nationally, the wholesale value saw less of a decrease at just 4.5%.
The DCA released its annual economic report in March this year, highlighting shifts that occurred in 2023, including a 3.1% increase in chicken company employees over the last year bringing that number to 18,888. Meanwhile, it also cites a 9.1% decrease in individual chicken growers in the same time frame.
According to the report, Delmarva growers and companies raised 601.1 million chickens in 2023 with 4,909 chicken houses, a less than one percent increase from the year over for both statistics, despite the chicken housing capacity increasing by 2.4%.
All told, 4.4 billion pounds of chicken was produced in 2023 in the Delmarva region.
The report paints a mixed picture of grower earnings. Chicken growers in Delmarva earned $312 million in contract income, a 2.8% increase which has been adjusted for inflation.
“The chicken community on Delmarva stayed a stable anchor for the region’s economy in 2023, producing modestly more chicken than in 2022 to meet demand and increasing grower pay year-over-year,” DCA Executive Director Holly Porter told the Delaware Business Times in a prepared statement.
She continued, adding that several factors negatively impact the industry for farmers above and beyond typical business concerns.
“Across the country and around the world, however, chicken is facing challenges from inflation to the threat of avian influenza,” she added. “As a region, we count on chicken growers, chicken companies, and allied businesses to deliver safe, healthy, tasty food, and everyone involved in Delmarva’s broiler chicken industry recognizes that.”
The report brings modern expenses into light for growers – $1.5 billion was spent in 2023 on feed ingredients such as corn, wheat and soybeans and roughly $877 million was spent in wages excluding benefits, a decrease in both categories of 4.8%.
“The annual figures, compiled by Delmarva Chicken Association, reflect price reductions in the chicken aisle that consumers welcomed in 2023,” the report states. “That price softening, however, put pressure on chicken companies’ balance sheets. An unwavering commitment to bird health and biosecurity allowed Delmarva chicken production to increase year-over-year, unruffled by avian influenza.”
