Industry Overview The U.S. turkey industry has experienced unprecedented growth during the past 20 years. Today's consumer recognizes turkey's nutritional value and good taste and enjoys turkey year-round, not just during the holidays. In 2007, U.S. consumption of turkey is expected to be nearly 17.1 pounds per person, the number four protein choice for U.S. consumers. Turkey production has more than tripled since 1970 - the total value of turkey processors' production in 2005 reached more than $12.4 billion. In 2006, U.S. growers raised 262 million turkeys. Industry Structure Turkey companies are vertically integrated, meaning they control or contract for all phases of production and processing - from breeding through delivery to retail. By maintaining control over research, hatching, growing, feeding, processing, packaging, transportation and marketing, the industry is able to produce wholesome, safe, high-quality products at the lowest possible cost to the consumer. Top 10 Turkey Producing States (in order) Minnesota North Carolina Arkansas Virginia Missouri California Indiana Pennsylvania South Carolina Iowa Top U.S. Turkey Processors Live Weight Processed (Million Pounds) * Butterball, LLC Jennie-O Turkey Store Cargill Turkey Products House of Raeford Perdue Farms, Inc. Virginia Poultry Growers Coop. Foster Farms Bill Mar (Sara Lee) Farbest Foods Prestage Foods Oscar Mayer West Liberty Foods Cooper Foods Michigan Turkey Producers Pilgrims' Pride Norbest, Inc. Willowbrook Foods, Inc. Zacky Farms, LLC. 1349 1265 961 250 249 225 223 220 213 210 205 196.7 180 171 166 158 155.4 131.3 *Estimates for 2006 from February 2007 Watt Poultry USA Turkey Industry Fact Sheet The turkey industry employs between 20,000 and 25,000 people in the United States. Tens of thousands more are employed in related industries, such as contract growing, product distribution, equipment manufacturing and a wide variety of other affiliated services. Distribution The product distribution for turkey is as follows: 41.1 percent sold to grocery stores and other retail outlets; 23.1 percent sold in commodity outlets; 21.6 percent sold to foodservice outlets; and 10 percent exported. The most popular turkey product continues to be the whole turkey, comprising a quarter of all sales. However, many turkey products are tailor-made for today's consumers who live fast-paced lifestyles and who demand products that taste great, are healthful and easy to prepare. As a result, several other turkey products are closing in on the whole bird's dominance in the marketplace. Ground turkey has experienced the largest sales growth among consumers in the last decade. Pre-cooked turkey products, including deli breast, turkey ham and turkey bacon, continue to be consumer favorites as well. Raw products, especially breast cuts, such as tenderloins and cutlets, also are seeing an increase in sales. In 2006, the average retail price for whole frozen turkeys in the United States was $1.03 per pound. The average person in the United States ate 16.9 pounds of turkey in 2006. Exports In 2006, more than 545 million pounds were exported. Exports now comprise 9.6 percent of total turkey production, compared with 1.2 percent in 1990. In 2006, the top four export markets for U.S. turkey meat were Mexico (310.9 million pounds), China (35.4 million pounds), Russia (25.2 million pounds) and Canada (21.9 million pounds). Consumer Trends Turkey consumption has more than doubled over the past 25 years. Consumers are recognizing the health benefits of turkey as a low-fat, high-protein source, not to mention its wonderful taste and cooking versatility. The Southern tradition of deep frying turkeys has gained in popularity in the last few years. This process seals the outside while the interior remains very juicy and the skin develops a crisp texture. Grilling turkey is fast, fun and convenient with turkey tenderloins, steaks, boneless breasts and drumsticks readily available. While the holiday whole turkey and the all-American turkey sandwich always will have a special place in consumers' hearts, Americans are enjoying an ever-widening variety of turkey products throughout the year. The National Turkey Federation (NTF) is the national advocate for all segments of the $8 billion turkey industry, providing services and conducting activities that increase demand for its members' products by protecting and enhancing their ability to profitably provide wholesome, high-quality, nutritious products. Its award-winning web site, www.EatTurkey.com, offers consumers, food professionals and the media an extensive library of information including healthy eating and restaurant trends, turkey cuts and purchasing tips, turkey nutrition and cooking techniques, and turkey facts and trivia. Additionally, the site presents a searchable database of more than 1,500 recipes, offers a recipe E-mail program and provides special seasonal and holiday ideas. The National Turkey Federation is headquartered in Washington, D.C.