NAICS 112320 Quarterly Industry Report
Broilers and Other Meat Type
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 112320Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report (NAICS 112320) provides valuation-focused intelligence for professionals assessing broiler and meat-type chicken production businesses. Additional data is drawn from Bureau of Labor Statistics[5], U.S. Census Bureau[6].. Data is sourced from USDA NASS poultry production reports[7], USDA ERS poultry market analysis[8], and SBA size standards[9] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for broiler production enterprises.
Industry Definition & Overview
Broilers and Other Meat Type Chicken Production (NAICS 112320) encompasses establishments primarily engaged in raising broilers, fryers, roasters, and other meat-type chickens from hatchling to market weight for commercial processing. The USDA National Agricultural Statistics Service[3] reported total U.S. broiler production at 9.33 billion birds in 2024, with live weight production reaching 61.1 billion pounds, up 1% from the prior year. Broiler production represents the largest segment of U.S. poultry output and one of the most vertically integrated sectors in American agriculture, with a small number of large integrator companies controlling breeding, feed milling, processing, and marketing functions.
Contract growing arrangements define the industry structure, with independent growers providing housing facilities and labor while integrator companies supply chicks, feed, veterinary services, and transportation. Georgia, Alabama, Arkansas, North Carolina, and Mississippi rank among the top broiler-producing states per USDA NASS poultry data[3]. Revenue for contract growers depends on per-pound grow-out fees established through tournament-style payment systems, while integrators generate revenue from wholesale and retail chicken sales. Feed costs, primarily corn and soybean meal, represent the single largest production expense for the integrated supply chain as documented by the USDA Economic Research Service[4].
Business valuations for broiler operations vary substantially between contract grower enterprises and integrated company assets. Grower facility appraisals focus on house capacity, equipment condition, ventilation system quality, environmental permits, and integrator contract terms. Integrated company valuations must additionally assess processing plant capacity, brand value, feed mill assets, breeder flock operations, and customer contract portfolios.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for broiler chicken production operations
- Revenue and profitability analysis across contract grower, independent, and vertically integrated business models
- SBA size standard classification and lending threshold data for NAICS 112320
- Comparable transaction data from recent broiler operation sales, grower facility transfers, and integrator acquisitions
- Market structure analysis covering vertical integration patterns and contract grower payment mechanisms
- Workforce and labor cost benchmarking for grower operators, farm managers, and facility maintenance staff
- Industry risk assessment including disease exposure, feed cost volatility, and consumer demand shifts
- Environmental compliance overview covering waste management, air quality, and water discharge permitting
- Capital expenditure profiles for broiler houses, ventilation systems, feed delivery equipment, and litter management
- Production efficiency metrics including feed conversion ratios, livability rates, and average market weights
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Animal Production and Aquaculture | 112 |
| Industry Group | Poultry and Egg Production | 1123 |
| NAICS Industry | Broilers and Other Meat Type Chicken Production | 11232 |
| National Industry | Broilers and Other Meat Type Chicken Production | 112320 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311615 | Poultry Processing | Poultry processing establishments that slaughter, cut, and package broiler chickens produced by contract growers and independent farming operations |
| 112310 | Chicken Egg Production | Chicken egg production operations that share feed supply chains, poultry veterinary infrastructure, and genetic breeding program resources |
| 112340 | Poultry Hatcheries | Poultry hatchery operations that supply day-old broiler chicks to integrators and contract growers for placement in grow-out facilities |
| 311119 | Other Animal Food Manufacturing | Other animal feed manufacturing operations producing specialized broiler starter, grower, and finisher rations for poultry production systems |
| 424440 | Poultry and Poultry Product Merchant Wholesalers | Poultry and poultry product merchant wholesalers distributing processed chicken from integrators to retail and food service distribution channels |
| 424510 | Grain and Field Bean Merchant Wholesalers | Grain and grain product merchant wholesalers supplying corn, soybean meal, and other feed ingredients used in broiler ration formulation programs |
SBA Lending Summary
720
Total SBA Loans
$1.4B
Total Loan Volume
$1.9M
Average Loan Size
17 yrs
Average Loan Term
8.32%
Average Interest Rate
2,128
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[10] classifies Broilers and Other Meat Type Chicken Production (NAICS 112320) with a size standard of $3.5 million in average annual receipts. Contract growers, who constitute the majority of independent broiler farming enterprises, generally fall within this threshold due to their fee-based revenue structure. Operations below this limit qualify for SBA-backed lending[11], government contracting preferences, and USDA agricultural support programs. Eligible businesses can access SBA 7(a) loans[12] for working capital, equipment, and acquisition financing, while 504 loans[13] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 184 | $648.4M | $3.5M |
| 2 | First Financial Bank | 312 | $445.2M | $1.4M |
| 3 | First Service Bank | 64 | $43.9M | $685K |
| 4 | Southern AgCredit, FLCA | 16 | $41.5M | $2.6M |
| 5 | First State Bank Nebraska | 8 | $40.0M | $5.0M |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for broiler chicken production?
Broilers and Other Meat Type Chicken Production is classified under NAICS code 112320, covering establishments primarily engaged in raising broilers, fryers, roasters, and other meat-type chickens for commercial processing.
What is the SBA size standard for broiler production?
The SBA[10] sets the size standard for NAICS 112320 at $3.5 million in average annual receipts, qualifying eligible broiler production operations, particularly contract growers, for small business lending programs.
How large is U.S. broiler chicken production?
The USDA NASS[3] reported total U.S. broiler production at 9.33 billion birds in 2024, with live weight production reaching 61.1 billion pounds, making broiler chicken the largest poultry meat category produced domestically.
How does contract growing work in broiler production?
Contract growers provide poultry houses, labor, utilities, and litter management while integrator companies supply chicks, feed, veterinary care, and transportation. Growers receive per-pound fees through performance-based payment systems that reward feed conversion and livability metrics.
What factors drive broiler facility valuations?
Key valuation drivers include house capacity and number, ventilation system quality, equipment condition, environmental permit status, integrator contract terms, and geographic proximity to processing plants as documented through USDA poultry production data[3].
Which states lead in broiler production?
Georgia, Alabama, Arkansas, North Carolina, and Mississippi rank among the top broiler-producing states per USDA NASS[3] data, with southeastern states collectively dominating national production due to favorable climate and established integrator infrastructure.
What risks affect broiler production valuations?
Critical risks include avian influenza outbreaks per USDA APHIS[14] monitoring, integrator contract cancellation or non-renewal, feed cost volatility, consumer demand shifts toward alternative proteins, and increasing regulatory requirements for animal welfare standards.
What capital investments are required for broiler grow-out?
Modern broiler houses cost $250,000 to $400,000 each to construct, with typical farms operating 4 to 8 houses. Major capital components include tunnel ventilation systems, automated feeding equipment, watering systems, litter management equipment, and environmental controls for temperature and humidity.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [3]USDA National Agricultural Statistics Service nass.usda.gov
- [4]USDA Economic Research Service ers.usda.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]U.S. Census Bureau census.gov
- [7]USDA NASS poultry production reports nass.usda.gov
- [8]USDA ERS poultry market analysis ers.usda.gov
- [9]SBA size standards sba.gov
- [10]SBA sba.gov
- [11]SBA-backed lending sba.gov
- [12]SBA 7(a) loans sba.gov
- [13]504 loans sba.gov
- [14]USDA APHIS aphis.usda.gov
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