Delmarva Peninsula’s chicken industry keeps a wary eye on global tariffs, but production still on the rise

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The back-and-forth over rising tariffs imposed by and against the U.S. has led to uncertainty in a variety of industries. The trade war is being closely monitored by leaders in Delaware’s chicken industry, which is a critical economic pillar in the state.

More than 613 million chickens were raised on the Delmarva Peninsula last year, according to the Delmarva Chicken Association. That region, which includes all of Delaware, the Eastern Shore of Maryland and the Eastern Shore of Virginia, processed 4.6 billion pounds of chickens in 2024.

In March, after President Donald Trump announced plans to raise tariffs on Chinese imports by 20% across the board, China added an extra 15% tariff on U.S. farm exports, including chicken. Since then, both nations have traded barbs over various measures to both raise and lower tariff rates.

Despite the uncertainty, the area’s poultry leaders say there’s no reason for consumers to panic.

“Delmarva’s chicken growers and companies have been able to produce more food today than in the past for a rapidly growing region, even while farmland is lost to development, and we’re doing it in an environmentally responsible way,” said Holly Porter, executive director of the Delmarva Chicken Association, in a press release. “Last year, growers and businesses overcame multiple challenges to keep feeding America and the world, including inflation that made energy and farm equipment more expensive and the expense and hard work needed to keep our flocks safe from avian influenza. As a result, Delmarva continues to be a leader in the U.S. chicken industry.”

“The chicken community is a major part of Delaware’s agricultural economy and really its overall economy,” said James Fisher, communications manager for the Delmarva Chicken Association. “About 70% of all income that’s earned on any farm in Delaware is earned on chicken farms … The value of all this chicken that we produce is about $4.8 billion in 2024.”

The wholesale value of chickens raised on the peninsula is up nearly $500 million from 2023.

Tariffs: A cloud on the horizon

While production is trending up, uncertainty remains around how emerging tariffs might impact future trade.

“Chicken companies always face challenges of different kinds when they’re trying to market chicken overseas,” Fisher said. “Everyone in the chicken community wants to make sure that overseas markets for chicken, especially for those products like chicken paws that really only have a serious market outside the U.S., continue to be available.”

Fisher noted that while about 15% of U.S. chicken is exported, the overwhelming majority is consumed domestically, meaning current tariff activity is unlikely to affect American grocery prices for now.

“More than 99% of the chicken we eat in America was hatched, raised and harvested in America,” he said. “So to the consumer, there isn’t going to be any obvious impact on chicken prices from tariffs.”

Poultry industry showing resilience

Despite global trade unease, 2024 data reflects continued investment and growth in the industry. The chicken house capacity on the peninsula grew from 138 million chickens in 2023 to 146 million in 2024; grower payments increased from $312 million to $327 million; and payrolls jumped by over $25 million, too.

The number of chicken houses also grew — from 4,909 in 2023 to 4,986 in 2024 — signaling long-term confidence among producers.

“In the chicken community, our goal is to grow at a moderate rate,” Fisher said. “The chicken community is growing at a slow sustainable pace, but we know that the demand for chicken is always growing … we’re just trying to keep up with that demand.”

Challenges closer to home

Rather than focusing solely on foreign policy, most growers are more concerned with cost pressures and infrastructure.

“The more immediate challenges your average chicken grower would discuss over lunch would be the cost of doing business,” he said. “So the inflation that might make equipment or supplies more expensive, looking at maybe any added regulations coming down on a state level or that Congress might pass.”

Recent policy wins, such as Maryland’s move to lower transportation costs for poultry trucks, are meaningful victories to the industry.

“Maryland agreed to make a change in their trucking regulations that would save about 10% of that cost over the year. So that was a win for the chicken community and having to spend a little less to make sure that chicken gets to market,” he said. “Chicken growers are always looking for ways to make their farms more environmentally responsible and more sustainable.”

Meanwhile, Delaware lawmakers, including Congresswoman Sarah McBride, have introduced the SAVE Our Poultry Act, a bipartisan bill that would invest in avian influenza research and prevention.

“Egg prices hit record highs because of bird flu,” said Rep. McBride in a statement. “That crisis didn’t just make grocery bills higher for Delawareans—it was a serious threat to the livelihoods of our egg producers. We must make the investment necessary to ensure we protect our farmers and their ability to keep shelves stocked.”

Though the immediate impact of tariffs remains uncertain, Fisher said the poultry industry on Delmarva is staying focused on what’s within reach.

“Growers are focusing on the changes that are in their control and focusing on ways they can make sure they’re not overspending to run their farm and keep chickens healthy,” he said. “When we shine a spotlight on the chicken economy, it reinforces just how important it is to Delmarva overall … It’s a major employer. It provides a way for young farmers to continue their family traditions. And we look for that to continue for many generations to come.”