Southeast Alabama Agriculture Overview

Poultry
   Alabama broiler producers marketed 873.3 million birds in the 1996 marketing year, a decrease of three percent from 1995. Nineteen ninety-six cash receipts amounted to $1.63 million, up 14 percent from 1995. Alabama ranks third nationally in broiler production behind Arkansas and Georgia.

   Several counties in the district have shown a significant increase in broiler production over the past five years, and growth in this commodity continues with the location of a new state-of-the-art poultry processing plant operated by Chareon Pokphand USA, Inc., located near Baker Hill in Barbour County. It is estimated that some 400 poultry houses are being constructed to accommodate the demand for poultry at this plant.

   The economic impact of the Chareon Pokphand USA poultry processing facility will be significant upon the region. According to an economic impact study conducted by Troy State University, the total investment into this plant will be $72.7 million. Of this amount, $41 million will be invested in plants at Baker Hill, $7.7 million in a chicken hatchery in Eufaula, $9 million in a feed mill in Pike County and $15 million in a breeder farm in Russell County. Another $50 million will be invested by farmers in the construction of broiler houses with a total investment estimated at $122.7 million.

   The company expects to employ 1,134 people, which is 9.2 % of Barbour County's total labor force of 12,300, which will in itself be a significant impact on the local economy. Taking into account a multiplier effect of these new jobs, an estimated 2,577 jobs will be created in the area economy. Wages and salaries are expected to reach nearly $40 million with nearly $27 million of those wages and salaries remaining in Barbour County.

   Retail sales are projected to total $8.42 million in the county and the company projects it will spend $59.6 million per year in the local economy for goods and services.

   The study also projected a population increase in Barbour County of 1,100 persons. This plant should support an expansion regionally of the poultry industry creating hundred of additional jobs and creating millions of dollars in economic impact in the next few years.

   Coffee County continues to lead the district in broiler production and cash receipts. In 1996, the county produced 47 million birds, ranking fourth statewide, generating $87.9 million in cash receipts.

   Geneva County followed with production of 33.3 million birds ranking seventh statewide and generating $62.3 million in cash receipts. Covington County and Dale County followed with 17.3 million birds and $32.4 million in cash receipts and 12.6 million birds and $23.6 million in cash receipts respectively. Alabama continues to be a strong producer of broilers and ranks third nationally, producing 11.5% of the total U.S. production.