Slower Organic Poultry Growth Could Hurt Grains Market
With Q1 2020 numbers indicating that organic poultry production growth will be slow, organic grain markets could suffer if this trend holds, according to the Mercaris Monthly Update for March.
Featuring major supply and demand factors for organic grains, including organic livestock production and year-to-date import data for organic corn and soybeans, the update shows broiler slaughter down 2% from September 2019 through January 2020 over the same period the previous year, partly because of processing shutdowns during the Thanksgiving and Christmas holidays. Despite rebounding numbers in January, the current rate of production would place meat production growth at less than 1% for the 2019-20 market year.
“It will be critical to keep a watchful eye on organic broiler slaughter volumes over the coming months, as the majority of organic grain in the U.S. is destined to supply the organic livestock industries with feed,” noted Ryan Koory, director of economics at Silver Spring, Md.-based Mercaris, which provides market access and services for the identity-preserved agriculture industry, including organic and non-GMO corn, soybean, meal and organic wheat, and other small grains markets across the United States and Canada.
Koory added that this wasn’t a new state of affairs: Broiler slaughter was below the previous year’s totals for five months of the 2018-19 market year.
“With organic poultry being a huge demand driver, this slower growth in organic broiler production volumes raises questions about implications for the rest of the grains market as the [2019-20] market year progresses,” he observed.
Mercaris also offers an online Trading Platform, which enables buyers and sellers to find new markets and trade organic and non-GMO commodities.