Industry Overview Today's consumer recognizes turkey's nutritional value and good taste and enjoys turkey year-round, not just during the holidays. In 2012 U.S. consumption of turkey is expected to be more than 16 pounds per person, and is the number four protein choice for U.S. consumers. Turkey production has increased nearly 110 percent since 1970 - the total value of turkey processors' production in 2009 reached $16.3 billion and U.S. growers raised 248.5 million turkeys in 2011. 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 2011 (in order) Minnesota North Carolina Arkansas Missouri Virginia Indiana California South Carolina Pennsylvania Ohio Top U.S. Turkey Processors Live Weight Processed (Million Pounds) * Butterball, LLC 1,300 Jennie-O Turkey Store, Inc. 1,290 Cargill Value Added Meats 1,095 Farbest Foods, Inc. 360.0 Hillshire Brands Co. 340.0 Kraft Foods, Inc./Oscar Mayer 280.0 Foster Farms 273.7 Perdue Farms, Inc. 271.0 House of Raeford Farms, Inc. 259.0 Virginia Poultry Growers Coop. 245.0 West Liberty Foods, LLC 213.2 Cooper Farms 207.0 Dakota Provisions 205.0 Michigan Turkey Producers 180.0 Hain Pure Protein Corp. 170.0 Turkey Valley Farms 150.0 Prestage Foods 140.0 Zacky Farms, LLC 132.4 Norbest, Inc. (Moroni Feed Co.) 104.7 Northern Pride Turkey 40.0 White Water Processing Co. 30.3 Empire Kosher 25.2 *Estimates for 2011 from March 2012 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 for 2011 follows: 47.4 percent sold to grocery stores, delis and other retail outlets; 30.0 percent sold in commodity outlets; 15.5 percent sold to foodservice outlets; and 6.2 percent exported. The most popular turkey product continues to be the whole turkey, comprising less than 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. The top three turkey products sold in 2011 were whole birds, ground turkey, and cooked white meat (deli meat). Raw products, especially breast cuts, such as tenderloins and cutlets, also are seeing an increase in sales. In 2011, the average retail price for whole frozen turkeys in the United States was $1.58 per pound. The average person in the United States ate 16.1 pounds of turkey in 2011. Exports In 2011, 703.3 million pounds were exported. Exports now comprise more than 12 percent of total turkey production, compared with 1.2 percent in 1990. In 2010, the top four export markets for U.S. turkey meat were Mexico (399.0 million pounds), China (82.9 million pounds), Hong Kong (37.9 million pounds) and Canada (22.7 million pounds). Consumer Trends Turkey consumption has nearly doubled over the past 30 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.