SALT LAKE CITY—The poultry industry continues to thrive, with strong demand and high prices for chicken products. However, the cattle market is facing contraction due to various factors such as high input prices, interest rates, and economic inflation.

At a recent workshop called “Understanding Livestock Markets,” experts discussed these challenges and provided insights. Drought and high supply costs have led to a surplus of female cattle being sold for market instead of being kept for breeding purposes, resulting in the smallest U.S. cattle inventory in 73 years. This contraction is expected to continue until 2025, leading to potentially record-high cattle and beef prices.

On the other hand, the domestic turkey sector is recovering from the impact of Highly Pathogenic Avian Influenza outbreaks, with increased inventory and production driving prices down. The success in controlling avian flu outbreaks indicates the effectiveness of biosecurity measures. Broiler chickens remain unaffected by avian flu and are meeting the high demand for poultry products.

Egg prices have improved since the HPAI outbreak in 2022, but continued avian flu presence and stagnant flock growth may lead to price increases later in the year.

Farmers are also facing challenges with high supply costs and increased interest expenses, limiting their access to credit. The pork industry experienced financial difficulties in 2023 due to high production costs, although there has been some relief in input costs recently. Despite disruptions, pork production has increased, and pork exports grew by 7% last year, indicating increased global demand and competitiveness for U.S. pork.