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The Poultry Market Intelligence Forum at the 2026 International Production & Processing Expo (IPPE), sponsored by the U.S. Poultry & Egg Association, brought together industry experts to assess how economic conditions, political uncertainty and changing sustainability expectations are reshaping the U.S. poultry and egg sectors.
Economic outlook: demand growth continues, but labor is still the pain point
Brian Earnest, economist at CoBank, said the labor market has largely balanced, yet labor remains a concern—especially in processing plants and on farms. He also noted inflation trends, easing feed costs and continued growth in poultry consumption.
Earnest emphasized that chicken remains the fastest-growing protein, with production expected to increase 2% in 2026 and broiler output nearing 9.4 billion heads. He added that the industry is steadily shifting away from commodity-style dynamics toward greater specialization, including heavier birds, expanded further processing and rising domestic demand for dark meat.
He also pointed to improved bird performance as a factor helping companies manage labor shortages, higher capital costs and breeder supply challenges.
The Animal Economics take: With labor still tight, productivity gains—driven by bird performance and processing efficiency—remain central to protecting margins, especially as the sector invests further in higher-value products.
Washington update: “predictably unpredictable” ahead of midterms
Christian Richter, principal at The Policy Group, described the 2026 policy environment as “predictably unpredictable” ahead of midterm elections. Key themes he highlighted included the economy, immigration, trade policy uncertainty and the future of the Farm Bill.
Richter also underscored ongoing challenges tied to tariffs, federal debt and immigration reform, noting their implications for agriculture and labor availability.
The Animal Economics take: For poultry businesses, policy risk is increasingly operational risk—affecting workforce planning, trade flows and the regulatory outlook that shapes investment decisions.
Sustainability and welfare: moving from commitments to operational action
Ryan Bennett, executive director of the U.S. Roundtable for Sustainable Poultry & Eggs and the International Poultry Welfare Alliance, closed the forum by outlining how sustainability and animal welfare expectations are changing—driven in part by corporate buyers.
Bennett highlighted increasing climate and insurance risks, and he described a shift toward outcomes-based animal welfare, focused on bird health, behavior and performance. He said sustainability is moving beyond commitments and toward implementation across the supply chain.
The Animal Economics take: Outcomes-based approaches align welfare metrics with business performance—putting measurable bird health and behavior indicators at the center of how buyers, insurers and supply chains evaluate production systems.
Why it matters
The forum’s combined message was that U.S. poultry and eggs are entering 2026 with demand tailwinds, but navigating a complex mix of labor constraints, uncertain policy signals and accelerating sustainability expectations—each shaping how the industry invests, operates and competes.
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