Global Turkey Hatchery Market Size Analysis
The global Turkey Hatchery market size is estimated to be valued over 1.3 billion in 2018 and will register a CAGR of above 5.1% during the forecast period (2018-2028).
Turkeys are native to North America and constitute as important poultry meat for many western communities. Global, turkey meat production is estimated to be over 5.7 million tonnes/year, out of which nearly 60% is produced in North America. Turkey hatcheries are set up with intention of rearing turkey for meat consumption purpose. Commercial turkey breeding hens produce about 45-60 live chicks each year. Turkey eggs take 28 days to hatch. Although there are many breeds, the white feathered hybrid is dominating industry globally with over 75% of market share. The industry is confident of growth in the long term, the latest USDA projections pointing to an output of 3.1 million tonnes during forecast period.
Global Turkey Hatchery Market Drivers and Challenges
Turkey hatchery market revenue is expected to be driven by various factors. Some key macroeconomic factors expected to boost the growth of the product are increased per capita income, consumer demand for affordable processed food and increased meat demand. The industry is expected to be further driven by increase in population.
Compared to chicken meat, the per bird yield is high in terms of meat with hybrid turkey reaching 6 kg in weight by 10 weeks of age, with a feed conversion ratio (the ratio of the amount of feed eaten to body weight gain) of about 2:1. Commercial turkeys are bred specifically to have more meat in the breast and thighs. White feathered turkeys are generally preferred, since they do not have pigment spots on the skin when plucked and hence dominate market share. Breast meat is 70% of the carcass value and 73% of carcass yield followed by thigh meat (13%).
Breast meat has only 1% fat and hence is attracting health conscious consumer segment. However, due to high demand for short turnover time the hybrid variety have been developed which are much more difficult to farm than broiler chickens, especially in the early stages. Males have excessive breast meat that they are unable to mate due to which the hens are artificially inseminated. Fast growth and a focus on breast meat, has placed pressure on their legs which do not develop rapidly causing skeletal disorders thus increasing the cost of operating and maintaining turkey hatchery and farms. The main challenges in the industry include environmental control, egg production consistency, brooding of poults, litter management due to caking and aggravated by drinking water spillage. These factors sum up as market restrains.
The processed poultry meat market is segmented on the basis of type of poultry, product type, end user and geography. This also holds true for turkey. The product type segment comprises of cured and uncured products. End user segment is categorized into retail and food service industry. Other categorization includes meat types that use synthetic or organic preservatives such as sodium nitrite and salt. Turkey meat is also marketed as ready-to-cook or ready-to-eat products these include nuggets, patties, burgers, sausages, drumstick, cutlet, strips and other products.
Global Turkey Hatchery Market Size and Forecast: Regional Analysis
North America is not only the largest consumer but also the leading producer. The region accounted for 61 per cent of the world total production with much of the production taking place in -Minnesota, North Carolina, Arkansas, Missouri and Virginia.
Latin America turkey consumption is rising at very impressive rate. Also, Brazil is the second largest producer in the region. ‘Further processing’ of turkey portions is enabling the processor to attract a larger share of the consumer’s budget and gain poultry market share.
Global Turkey Hatchery Market Size and Forecast: Competition Landscape
Some of the key turkey hatchery market companies are Butterball LLC, Jennie-O Turkey Store, Inc, Cargill Value Added Meats, Farbest Foods Inc. and the Hillshire Brands Company. The turkey hatchery business is in boom and this is clear from the fact that in 2016 Hendrix Genetics, the global leader in turkey breeding, finalized its agreement to purchase 100% of turkey distributor Coolen Hatchery, the owner of the largest turkey hatchery in the Netherlands.
The new technology used in turkey hatchery reduces stress on the hatchlings due to advancements in environmental control technology thus increasing the survivability of day-old turkey poults. Healthy poults convert feed more efficiently and result in the best bird meat possible thus creating trust in meat consumers and this would drive its demand growth in near future.