Your Guide to the Texas Poultry Industry

Key takeaways: 

• Texas ranks in the top 5 nationally for both broiler chicken and egg production — making poultry a vital industry to the state. 
• The Lone Star State offers an excellent opportunity for aspiring poultry producers; most poultry farms here are located in east and south-central Texas.
• Understanding how to confront challenges within the poultry industry, like biosecurity or environmental regulations, can set you up for long-term success.
• Launching a poultry agribusiness could require a combination of several financial services, including rural land, equipment, or agribusiness loans. 

When’s the last time you ordered a plate of chicken wings, made a turkey sandwich, or scrambled some eggs for breakfast? Chances are, pretty recently — and you have the poultry industry to thank for how easy it is to get these products. 

But you don’t just have to be a poultry consumer. If you own acres in Texas, starting a poultry operation could be your ticket to strong profits and a big return on your land investment. 

Here’s what you need to know about why the poultry industry is so strong in Texas, how to get started with a poultry operation, and how to finance your new business venture.

What does the poultry industry include? 

When you hear “poultry,” most people think about chickens and eggs. But the industry is even more expansive. Poultry can include chickens, turkeys, geese, ducks, quail, or other birds. 

The poultry industry produces dozens of products you pick up at the grocery store or eat at restaurants: wings, chicken thighs, Thanksgiving turkeys, frozen nuggets, cartons of eggs, and more.

In addition to these products for human consumption, the poultry industry also produces items like pet food or fertilizer. 

How important is the poultry industry in Texas? 

When Americans think of Texas, they might automatically picture a longhorn bull out on the range. But it’s not just beef playing a huge role in the Texas agricultural economy.

According to the Texas Poultry Federation, the Lone Star State ranks in the top five nationally for both broiler chickens and egg production. Texas processes about 60 million chickens — each month. That adds up to almost 5 billion pounds of chicken meat coming from Texas monthly. Meanwhile, the state produces more than 6.6 billion eggs each year. 

There are also about 6.5 million turkeys raised in Texas. 

Poultry production out of Texas helps fill a massive demand in the market. In the U.S., chicken is consistently the top meat consumed. For example, Americans consumed on average 100 pounds of broiler chicken (per person, per year) in 2023. That was nearly double average beef consumption (57.4 pounds per person) or pork (50 pounds). 

Chicken, as well as other poultry products like turkey, is seen as a healthy, affordable option at the grocery store. In fact, USDA data also shows that chicken sales jumped 60 percent from 2021 to 2022. 

With demand for poultry products showing no sign of slowing down in the U.S., poultry production could be a strong boost to landowners’ ability to profit from their acres. 

Where are most poultry farms located in Texas? 

Most of the poultry industry in Texas is concentrated in the eastern and south-central regions of the state. Specifically, Shelby County and Gonzales County are both in the top 10 nationally for poultry and egg production. Both counties produce more than $400 million within the industry, according to Texas A&M.

However, poultry operations are scattered all across Texas, and raising birds doesn’t have to be limited to one region of the state.

Potential challenges within the poultry industry 

If you’re thinking about starting your own poultry business in Texas, it could be a great opportunity to make the most of your rural acres. However, there are a few proactive things to consider if you want to best protect your investment. 

First, biosecurity protocols at a poultry operation are critical. Chickens and other birds are vulnerable to harmful diseases, such as avian influenza. Make sure to outline plans for keeping your operation clean, disinfecting equipment, limiting visitors, controlling pests, and vaccinating your flocks. These strategies will help reduce the chances of an outbreak on your farm.

You’ll also need to keep an eye on expenses. Feeding and housing potentially thousands of birds can mean high input bills. Feed costs especially can fluctuate up and down according to the market. These are all numbers you’ll need to factor into your initial business plan to ensure your revenue can exceed your expenses. 

If you’re someone who’s never worked in poultry before, the initial learning curve can also be a challenge. However, there are plenty of resources available to learn more about things like breeding, poultry health, sanitation, supply chains or more. For example, Texas A&M AgriLife Extension offers virtual programs, and you can also check with your local extension office. 

You’ll also need to keep in mind any environmental regulations for your poultry farm. For example, the Texas State Soil and Water Conservation Board requires anyone who operates a poultry facility to design and execute a Water Quality Management Program. This plan will help manage waste from your operation and protect water sources in your community.

How to start a poultry farm in Texas 

Launching a poultry agribusiness can be a large upfront investment. Texas Farm Credit is here to find the right package of financial services to help you fund your operation.

Before anything else, you need land to house your flocks. If you already own acres in Texas, you might need an operating line of credit, or other agribusiness loans to help pay for equipment or construction on that land. 

If you don’t own any acres yet, a rural land loan can help finance this first step. Before choosing your tract of land, make sure to consider the region’s average climate or potential for natural disasters, like floods. 

Once your land is secured, you’ll need the right equipment. This could include chicken houses, watering systems, incubators for chicks, and more. 

And finally, the most important part: your birds. You can purchase either eggs or live birds from a supplier. Or, many poultry operators also contract out with larger processors, like Tyson. In this scenario, the company would supply birds and feed, while you would pay for labor and housing. This contract arrangement can help ensure more stable income and can reduce the amount of logistics or expenses you’ll need to be responsible for.

Get help from the experts 

Whether you’re looking to either launch or expand your poultry operation in Texas, the team at Texas Farm Credit can help. We offer a variety of financial services — from rural land loans and agribusiness loans to equipment loans or land refinancing — that can help you reach your goals. 

Give us a call at 800-950-8563, or drop us a note here.