How Much Do Turkey Farmers Make Per Turkey?

As you sit down to enjoy your roasted turkey this Thanksgiving, you may find yourself wondering – how much did the farmer who raised this bird actually make? The economics of turkey farming are quite different from what you pay at the grocery store. Read on to learn how much turkey farmers earn per bird sold.

Thanksgiving Turkey Farmer Profit

Let’s first look at the typical profit a turkey farmer sees around the major turkey holiday of Thanksgiving. This will give insight into how much they make per turkey during the peak season.

• In 2021, farmers received just $0.06 per pound of turkey sold at Thanksgiving.

• That year, whole frozen turkeys retailed for about $123 per pound on average

• So for a 15 lb turkey, the farmer made only $0.90 while the retail value was over $18.

• The farmer’s share was thus only 5% of the end retail value.

Clearly, turkey farmers make only a tiny fraction of the supermarket turkey price, even at Thanksgiving when demand peaks.

Year-Round Turkey Farmer Earnings

The pennies per pound that turkey farmers receive at Thanksgiving represents their income for much of the year as well.

• In 2021, the average yearly wholesale price for whole frozen hens was $1.23 per pound.

• Farmers likely received around $0.06 per pound for their turkeys over the entire year.

• For context, the average turkey farmer raises about 6,000 birds per year.

• So on a flock of 6,000 turkeys, they would earn about $360 total if each bird weighed 15 pounds.

• That works out to $0.06 per pound earned across the full year.

So in a typical year, turkey farmers make only about 5-6 cents per pound of turkey they raise. The retail value markup is enormous compared to what the actual turkey producer receives.

Estimated Turkey Farmer Annual Income

Based on the earnings per pound and average flock sizes, what does total annual income look like for turkey farmers?

• The average annual salary of a turkey farmer is around $31,659.

• Beginner turkey farmers often earn less, making $20,000 – $25,000 a year.

• Experienced commercial turkey farmers can earn up to $50,000 annually.

• Turkey farmers can supplement income through custom slaughter, hatching eggs, community supported agriculture, and agritourism.

So while the per turkey or per pound earnings are low, full-time turkey farmers are able to build scalable businesses with yearly gross incomes in the $30,000 – $50,000 range under normal market conditions.

Why Don’t Turkey Farmers Earn More?

If the retail price per pound of turkey is over $1 but farmers only get around $0.06, where does the rest of the money go?

• Turkey farmers do not own the full production chain – the hatcheries, processors, distributors, and retailers capture most of the turkey revenue.

• Vertical integration in the poultry industry has also concentrated profits with a handful of large integrated corporations.

• Commodity turkey prices fluctuate, squeezing farmer margins. Feed, housing, and labor costs eat up most of farmers’ earnings.

• Lack of marketing power and bargaining leverage limits turkey farmers’ ability to negotiate better wholesale prices.

• Farmers carry substantial financial risks while integrators pass expenses back to growers.

In essence, the turkey you buy at the store is a highly refined, marked-up product compared to the basic commodity bird the farmer sells. The farmer sees only a sliver of that final retail value.

Options For Turkey Farmers To Increase Income

A few strategies turkey farmers can use to try increasing their earnings include:

• Pursuing niche, premium turkeys like heritage breeds that garner higher prices.

• Direct marketing turkeys through farm stands, farmers markets, or CSAs.

• Offering value-added products like smoked turkey, sausages, broth, pet treats, or jerky.

• Providing agritourism events like turkey farm tours, petting zoos, and festivals.

• Starting an on-farm hatchery to sell poults and hatching eggs.

• Diversifying with additional poultry like broilers, layers, or waterfowl.

• Joining or forming an agricultural cooperative to gain marketing leverage.

• Reducing costs through renewable energy, equipment sharing, or group buying.

While the base commodity turkey market offers slim margins, farmers can innovate in hopes of incrementally boosting their turkey-related income.

Turkey Farmer Profit Outlook

For the last several years, turkey farmers have benefitted from increased turkey prices driven by strong demand and tighter supplies. But input cost inflation has eroded profitability in 2022. High feed, fuel, labor, and barn construction expenses challenge farmer bottom lines.

The outlook for turkey farmer profitability in coming years depends on input costs moderating and demand remaining relatively steady. Like with any farming enterprise, expect some good years and some bad years. But on average, turkey farmers can expect to earn around 5-10 cents per pound sold across the full year.

Summary