A new report released by The Alabama Cooperative Extension System this month examines how a new poultry feed mill in Alabama could impact the state’s economy. The organization posits that if a $30.2 million facility capable of producing 10,000 tn/wk of poultry feed were built in the state, the facility’s operations could generate $207 million each year in sales and $5.4 million a year in taxes paid.

Opening of a new poultry feed mill in the state would have positive direct effects on a wide range of industries in Alabama, the report’s authors posit.

“The construction of a new feed mill requires purchases such as steel, concrete, and milling equipment, including grinders, mixers, pellet mills, and material handling systems,” the report states. “Once construction is completed, the feed mill consistently purchases feed ingredients and packaging materials, utilizes other professional services, and purchases many other inputs to produce feed for sale.”

Estimates were based on the assumption that a feed mill in the state would source about 29.5% of its annual operations inputs from local sources at an average price of $260/tn.

To view the report, click here.

Alabama was the third largest state for broiler chicken production in 2019, according to data provided by the National Chicken Council.