Industry Overview The U.S. turkey industry has experienced unprecedented growth in 2007. Today's consumer recognizes turkey's nutritional value and good taste and enjoys turkey year-round, not just during the holidays. In 2008, U.S. consumption of turkey is expected to be nearly 18 pounds per person, the number four protein choice for U.S. consumers. Turkey production has increased nearly 300 percent since 1970 - the total value of turkey processors' production in 2007 reached $14 billion and U.S. growers raised 271.7 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 2007 (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 Value Added Meats Farbest Foods, Inc. House of Raeford Farms, Inc. Perdue Farms, Inc. Foster Farms Virginia Poultry Growers Coop. Prestage Foods Sara Lee West Liberty Foods Oscar Mayer Cooper Farms Michigan Turkey Producers Norbest, Inc. (Western Sales LLC) Dakota Provisions Zacky Farms, LLC Turkey Valley Farms Northern Pride Inc. White Water Processing 1375 1255 1112 271 254.5 252 248.3 241 236 220 217.5 213 178 171 150 145 131.3 115 40 31.8 *Estimates for 2007 from February 2008 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 2007 follows: 42.6 percent sold to grocery stores and other retail outlets and 17.7 percent sold to foodservice outlets. The rest were sold as a commodity or exported. The most popular turkey product continues to be the whole turkey, comprising nearly 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 2007 were whole birds, cooked white meat and ground turkey. Breast cuts, such as tenderloins and cutlets, also are seeing an increase in sales. In 2007, the average retail price for whole frozen turkeys in the United States was $1.15 per pound. The average person in the United States ate 17.5 pounds of turkey. Exports In 2007, 547 million pounds were exported. Exports now comprise about 10 percent of total turkey production, compared with 1.2 percent in 1990. In 2007, the top four export markets for U.S. turkey meat were Mexico (308.7 million pounds), China (48.2 million pounds), Russia (30.7 million pounds) and Canada (23.4 million pounds). Consumer Trends Turkey consumption has 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.