how much do turkey farmers make

How Much Do Turkey Farmers Really Make? Uncovering the True Economics of Turkey Production

As Thanksgiving approaches, turkeys take center stage in preparation for the big feast. But while consumers fork over reasonable prices for these birds at the grocery store the farmers who actually raise them often struggle to turn a profit. The economics of commercial turkey production are far more complex than you might expect. Let’s take a closer look at what’s behind the surprising truth of how little turkey growers earn.

The Retail Price Doesn’t Reflect the Farmer’s Small Cut

In 2021, the average retail price for a frozen whole turkey was $1.23 per pound. But out of that price, turkey farmers only received around 11 cents per pound sold. The rest went towards processing, transportation, marketing, and other production costs.

So even when you pay $15-$20 for a typical 15 lb turkey at the supermarket, the farmer who raised that bird will only bring home about $1.65 total. For a medium scale turkey farm producing around 150,000 birds annually, that translates to just $165,000 in annual income from turkey sales. With all the overheads of running a farm, that slim portion of the retail price makes it tough for growers to stay profitable.

Wholesale Prices Squeeze Farmers’ Earnings

Wholesale turkey prices fluctuate year to year based on supply and demand dynamics But even when wholesale prices rise, it doesn’t necessarily translate into bigger paychecks for farmers.

For example, in 2021 the average wholesale turkey price was up 11% compared to 2020. However, due to higher costs for fuel, labor, animal feed and other farm expenses, turkey growers didn’t see an equivalent jump in their earnings. This shows how farmers get caught in a squeeze between volatile commodity prices and steadily rising production costs.

The Average Turkey Farmer’s Salary is Shockingly Low

According to the US Bureau of Labor Statistics, the average annual salary for a turkey farmer is just $33,670. That’s well below the national median income. Most turkey growers rely on off-farm jobs or a spouse’s earnings to stay afloat.

Clearly, the meager wages of turkey farmers don’t align with the value of their hard work and contributions to our food system. Without their skills and dedication to properly raising flocks of 15,000 birds or more, there would be no turkeys for holiday feasts.

Industry Structure Limits Turkey Farmers’ Income Potential

In the consolidated poultry industry, most commercial turkey farmers work under contract to large processors like Cargill or Butterball. The companies provide the birds, feed, and transportation while contract growers raise the flocks in barn facilities they own themselves.

This arrangement puts the big integrated companies in control of setting farmer pay rates. Growers have little leverage to negotiate better contract terms or increase their share of turkey earnings. The contract system restricts their independence and ability to market birds on their own.

Why Are Turkey Farmers Paid So Poorly?

With turkey being inexpensive and in demand year-round, you may wonder why the farmers raising them struggle to make ends meet. Several key factors contribute to the surprising economics:

• Oversupply keeps wholesale turkey prices low
• Contracts favor integrators over growers
• Consolidation gives farmers little bargaining power
• Vast majority of growers work under contract
• Retailers and processors claim most of consumer dollar
• Rising production costs squeeze already thin margins

This lopsided system stacked against the farmer explains the meager earnings. Companies like Cargill and Butterball dominate processing and distribution, shaping the entire turkey supply chain.

Signs of Progress for Turkey Growers

While the situation remains bleak for many turkey farmers, some promising changes could improve their prospects:

• New farmer advocacy groups are forming, giving turkey producers more of a collective voice.

• Some farmers are exploring niche, specialty turkeys that can command higher prices. But these remain a small fraction of the overall market.

• A few new start-up processors are entering the game, aiming to increase competitiveness and options for growers. But progress is slow.

• Some major players have introduced multi-year contracts to help insulate farmers from market volatility. But the core system tilting power away from growers persists.

While not silver bullets, these developments show some momentum towards rebalancing the scales for turkey farmers.

This Thanksgiving, Celebrate Turkey Growers Too

As you gather for Thanksgiving dinner, take a moment to appreciate the turkey farmer who helped provide the centerpiece of your holiday meal. While commodity turkey growers may only get pennies back for their efforts, there are small ways we as consumers can show support:

• Seek out locally raised, pasture-raised turkeys from small regional farms.

• Choose certified organic or free-range turkeys, as these indicate better practices for birds and farmers.

• Contact elected representatives about policies that empower independent farmers.

• Donate to non-profits that advocate for poultry growers.

• If you know a turkey farmer, thank them for their dedication to providing food for your family!

While feasting on the bounty of the turkey farmer’s labor this Thanksgiving, let’s also give thanks for their commitment to sustaining this cherished holiday tradition. And pledge to help bring about a more balanced poultry system where hard-working turkey growers can prosper as they deserve.