Today, there are many factors that affect poultry in the United States and abroad and determine how 2022 into poultry trends 2023 will function in the industry. Especially in the United States, there is more support for expanding the scope of the poultry industry model.

Biden’s push for more processors

In late 2021, US President Joe Biden said, “We will empower family farmers and increase their income by strengthening the Ministry of Agriculture’s tools to stop the abuse of some meat processors.” I signed the order. He mentions the lack of competition in the US meat and poultry processing sector, and states that his administration has hit consumers, farmers, and the US economy.

Processing Project Related funds will intensify competition by launching 15 independent processing projects, creating more options for producers and consumers in the short term. In the long run, the USDA will also work with banks and other lenders to provide more capital to independent processors and allow them to expand. Farmer Focus
US organic poultry that already operates as an independent processor to help farmers maintain farm management for generations to gain insights into this issue and other poultry trends 2023.

Focus on farmers

In 2021, FF was the fastest growing chicken brand. In 2022, the company’s “pre-season” products, which have won multiple NEXTY awards for taste innovation, will be launched. Product flavors include black garlic, umami, and the Middle East (tahini, sumac, pomegranate). Farmer Focus CEO and Founder, Corwin Heatwall, praises Biden’s efforts to support independent processing.

FF CEO and founder Corwin Heatwole praises Biden’s efforts to support independent processing. This supports the economic feasibility and sustainability of US poultry farms. He sees two major issues for farmers created by the dominant business model of the U.S. chicken industry: an integrated conglomerate where farmers hire and raise birds instead of owning them. These problems are the lack of farm management for farmers with payment systems that make them to conflict with each other episodes of a farm bouncing off the brink of bankruptcy. You can even see the next generation return to the farm.

Partner Farmer Model

This year, FF will continue to expand its partner farmer model, celebrating progress. The company has already discovered that, among other benefits, the average age of a farmer is about 10 years younger than the national average age of a farmer.

“We have found that giving farmers ownership and control and enabling them to be viable and sustainable for the next generation creates an incredible success story.” Said Heatwole. “The story of a farm recovering from the brink of bankruptcy. You can even see the next generation return to the farm.”

Market and supply chain pressure

As the Biden administration stated, meat and poultry prices are currently high. It is now even higher due to pandemic-related inflation. However, the lack of competition in the industry affects rising chicken prices as well as supply and demand. These factors are typically caused by factors such as undersupply of feed ingredients, labor shortages, and supply chain disruptions. Debarshi Sengupta, FF’s Chief Financial Officer, explains that all of these forces are now creating a strong pull-and-pull for the US chicken market.

“We are facing a faster-than-expected period of economic recovery. This is the growing consumer demand for food and beverages (both away from home and at home). It is characterized not only by increased consumption), but also by large global demand: problems such as raw material supply, supply chain disruptions, labor shortages and increased sales, “he says. “All of this leads to significantly higher input costs, which consumers eventually convert to sticker prices.”

Rising food costs across the board

According to S & P Capital IQ Market Intelligence, food costs rose 4.5% year-on-year in September 2021. Sengupta advises food processors to evaluate the entire supply chain, identify cost pressure points, and work strategically and systematically with vendors and suppliers. “Similarly, food processing customers need to be aware of the pressures food processors are facing due to rapid input cost inflation and work together to address the pressures of cost inflation,” he says.

Meat demand is exceeding supply

Ed Hinson, Chief Sales Officer of FF, adds that the meat supply chain is currently in a situation where demand exceeds supply. More and more people are cooking at home and grocery stores are busy. “For some partner retailers, walk-in traffic is increasing by 13% each year,” he says. “Looking at the meat supply chain, it takes weeks for poultry to catch up, months for pork, and years for beef because of the farm deadlines. Covid-19 is no longer a problem, There is a supply chain recovery period. “

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Source: Poultry World