NAICS 1123

Poultry & Egg Production

Explore NAICS 1123 Poultry & Egg Production: U.S. broiler, turkey, and egg industry trends, vertical integration, and market dynamics.

Industry Overview

Poultry and Egg Production encompasses establishments primarily engaged in breeding, hatching, and raising poultry for meat or egg production. This includes broiler chickens, turkeys, laying hens, and other poultry such as ducks and game birds. The U.S. is the world's largest broiler producer and among the top egg-producing nations, with production concentrated in the Southeast for broilers (Georgia, Arkansas, Alabama, North Carolina, Mississippi) and the Midwest and Southeast for egg production.

The broiler industry is almost entirely vertically integrated. A small number of large integrator companies — including Tyson Foods, Pilgrim's Pride, Sanderson Farms, and Perdue — own the birds from hatchery through processing, contracting with independent growers who provide the grow-out houses and daily management. Turkey production follows a similar integrated model. The egg industry has a somewhat different structure, with large egg companies owning both the hens and the facilities, though contract arrangements also exist.

Poultry and eggs are among the most affordable animal proteins, giving this sector relatively stable domestic demand even during economic downturns. Chicken consumption per capita in the U.S. has surpassed beef, driven by competitive pricing, perceived health attributes, and product innovation in further-processed and ready-to-eat formats. Export markets, particularly for dark meat and chicken paws, add significant value.

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Industry Trends

01

Avian influenza outbreaks have periodically devastated laying hen and turkey flocks, driving egg price spikes and accelerating investment in biosecurity infrastructure.

02

Cage-free egg production mandates in several states and pledges by major food companies are driving a structural shift in the laying hen industry toward new housing systems.

03

Organic, free-range, and no-antibiotics-ever poultry products are gaining market share, commanding premium prices and requiring modified production practices.

04

Automated processing technology in poultry plants is advancing as companies address persistent labor challenges and rising wage costs in processing facilities.

05

Export market diversification beyond traditional destinations is a strategic priority, with sub-Saharan Africa and Southeast Asia emerging as growth markets for U.S. poultry.

Frequently Asked Questions

What is NAICS 1123? ▾
NAICS 1123 covers Poultry and Egg Production, including establishments that breed, hatch, and raise chickens, turkeys, and other poultry for meat and egg production. The U.S. is the world's largest broiler chicken producer and a top global egg producer.
How does the vertically integrated broiler model work? ▾
Integrator companies own the chicks, provide feed and veterinary services, and process the finished birds. Contract growers own the grow-out houses and provide daily care, receiving payment per flock based on performance metrics. This model gives integrators control over quality and costs while shifting facility investment to growers.
What is the cage-free egg transition? ▾
Multiple states have passed laws requiring eggs sold within their borders to come from cage-free systems by specified deadlines. Combined with voluntary pledges from major retailers and restaurant chains, this is driving a multi-billion-dollar industry transition from conventional cage housing to cage-free aviary and enriched colony systems.
How has avian influenza affected the poultry industry? ▾
Highly pathogenic avian influenza outbreaks have resulted in the depopulation of tens of millions of birds, primarily laying hens and turkeys. These events cause sharp egg price increases, disrupt export access when trading partners impose bans on U.S. poultry, and drive ongoing investment in biosecurity and surveillance.
Why is chicken the most consumed meat in the U.S.? ▾
Chicken consumption surpassed beef driven by its lower retail price point, consumer perception of health benefits relative to red meat, and extensive product innovation in convenience formats like nuggets, tenders, and rotisserie birds. Efficient integrated production systems keep costs competitive.

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