President Donald Trump’s immigration policies, including mass deportations of illegal migrants, could result in lower chicken prices and increased wages for American workers, according to industry analysts. A report from AviNews.com highlights the poultry industry’s heavy reliance on immigrant labor, particularly undocumented workers. Losing this workforce would force companies to raise wages to attract American workers to processing plants and farms.
The reduction of immigrant populations could also decrease consumer demand for poultry products, creating an oversupply and driving down prices. Len Steiner of Steiner Consulting Group remarked, “We’re also going to lose some mouths to feed, and if they don’t consume it … the price comes down.”
While higher wages and cheaper chicken may benefit some Americans, poultry companies are bracing for financial challenges. Reduced consumption and increased labor costs could hurt profits and the value of their stock. Industry leaders are responding by accelerating investments in automation to reduce their dependence on human labor.
For example, Tyson Foods’ $300 million processing plant in Danville, Virginia, uses advanced automation to increase productivity by 20-30% while requiring 250 fewer workers. Similar investments are being made across the industry, spurred in part by Trump-era policies and concerns over labor shortages.
Automation is also helping to reverse decades of declining wages in the meatpacking industry. Historically, companies shifted from unionized urban workforces to cheaper, often undocumented labor in rural areas. The new focus on productivity could improve conditions for American workers willing to join the industry.
The sidelined American workforce presents an opportunity. Millions of U.S.-born men without college degrees remain unemployed or underemployed, and some could be trained to work in poultry processing. However, employers often prefer low-cost, compliant migrant labor over retraining domestic workers.
Reports of exploitative conditions for migrant workers, such as overcrowded housing near plants, underline the challenges of the industry’s labor practices. As immigration policies evolve, companies face tough decisions about balancing labor costs, automation, and productivity.
