After two and a half years of losses, turkey producers reduced production in 1998 and held the line again in 1999 and 2000. Thanks to the decline in feed cost and the smaller production, producers have found themselves in the black for over two years. Turkey production will increase again in 2001 in response to industry profits. Significant gains were posted in Mexico, Russia, and Hong Kong. Some export growth is forecast for 2001 but the 2000 growth will not likely be repeated.
Domestic demand looks improved as a larger supply of turkey found consumption at a higher price.
The reduced pork competition of 2000 obviously helped some but pork production will be on the rebound the later half of 2001. Prices and Returns Turkey prices were slightly higher the last half of 2000 than in 1999. Prices for the holiday quarter may exceed 1998's by about 2 cents with reduced competition from ham. For the year as a whole, prices will average about 2 cents higher than 1999's 69 cents per lb. average and almost 10 cents above the 1998 average price. Still, the profitability found by turkey producers in mid year 1998 should extend another year.