US turkey industry to cut supply to improve return
The unseasonal hot dry summer has caused a turnaround in the price of US turkey meat causing it to rise instead of fall, which in turn has lowered consumer demand.
“If it wasn’t for the drought prices would probably be down slightly,” explains Rick Vanderspeck, President of AG Forte, a turkey hatchery in Aurora.
But instead Vanderspeck tells us turkey prices are up, roughly %7 across the country. It’s not helping him any though.
“Our overall cost is up over 10% and prices are up.”
The turkey industry was starting to make major gains in the market. Pre-drought the demand for turkey was rising, with so many products available, turkey hot dogs, turkey sausange and turkey deli meat. But now as the prices are rising the demand is dropping
“The only way to get the prices up is to cut the supply so we’re starting to see that happen now. Next year’s projected supply of turkeys will be down compared to what it was in 2012,” explains Vanderspeck.
AG Forte owns about 90% of the farms where the turkeys that produce the eggs are raised and production at those didn’t slow at all this year. However, the other 10% is contracted work, and some of those farms got out of the industry because of rising costs.
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