NAICS 112340 Quarterly Industry Report
Poultry Hatcheries
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 112340Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report (NAICS 112340) provides valuation-focused intelligence for professionals assessing poultry hatchery businesses. Additional data is drawn from Bureau of Labor Statistics[6], U.S. Census Bureau[7].. Data is sourced from USDA NASS poultry production surveys[8], USDA APHIS National Poultry Improvement Plan[5], and SBA size standards[9] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for hatchery enterprises.
Industry Definition & Overview
Poultry Hatcheries (NAICS 112340) encompasses establishments primarily engaged in hatching poultry of any kind, including broiler chick hatcheries, layer pullet hatcheries, turkey poult hatcheries, and specialty poultry hatcheries. These operations receive fertilized eggs from breeder flock operations, incubate them under controlled conditions, and deliver day-old chicks or poults to grow-out farms, contract growers, and independent poultry producers. The USDA National Agricultural Statistics Service[3] tracks hatchery output as part of its poultry production surveys, with broiler-type chick placements alone exceeding 9 billion birds annually across the United States.
Hatchery operations function as a critical link in the poultry supply chain, positioned between breeder flock management and commercial grow-out production. Most large-scale hatcheries are owned by vertically integrated poultry companies that also control breeding, feed milling, grow-out coordination, and processing operations. Independent commercial hatcheries serve layer replacement pullet markets, specialty breed markets, and backyard poultry customers. The USDA Economic Research Service[4] notes that hatchery capacity and chick quality directly influence downstream production efficiency including livability rates, feed conversion, and market weight targets. Biosecurity is critical given that hatcheries can serve as disease transmission points across large geographic areas.
Business valuations for hatchery operations must assess incubator and hatcher capacity, equipment age and technology level, biosecurity infrastructure, breeder flock egg supply agreements, customer contracts with integrators or independent growers, and compliance with USDA APHIS[5] National Poultry Improvement Plan (NPIP) standards. Geographic service area, transportation logistics, and competitive positioning relative to integrator-owned hatcheries are additional factors that influence enterprise value.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for poultry hatchery operations
- Revenue and profitability analysis across broiler, layer, turkey, and specialty hatchery segments
- SBA size standard classification and lending threshold data for NAICS 112340
- Comparable transaction data from recent hatchery sales, acquisitions, and capacity expansion projects
- Equipment and technology assessment framework for incubation systems, hatching cabinets, and automation
- Workforce and labor cost benchmarking for hatchery managers, egg handlers, and vaccination technicians
- Industry risk assessment including disease transmission exposure, biosecurity compliance, and supply disruption
- NPIP compliance and regulatory overview covering USDA APHIS poultry health certification requirements
- Capital expenditure profiles for incubation equipment, climate control systems, and egg handling automation
- Production efficiency metrics including hatchability rates, chick quality scores, and fertility percentages
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 | Poultry Hatcheries | 11234 |
| National Industry | Poultry Hatcheries | 112340 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 112320 | Broilers and Other Meat Type Chicken Production | Broiler chicken production operations that receive day-old chicks from hatcheries for grow-out to market weight in confinement facilities |
| 112310 | Chicken Egg Production | Chicken egg production operations that use layer replacement pullets hatched and supplied by commercial poultry hatchery facilities |
| 112330 | Turkey Production | Turkey production operations that receive day-old poults from turkey hatcheries for placement in grow-out barns and finishing facilities |
| 112390 | Other Poultry Production | Other poultry production operations including duck, goose, and game bird farms that source hatching eggs or day-old birds from hatcheries |
| 311615 | Poultry Processing | Poultry processing plants whose throughput volume depends directly on hatchery chick placement levels and grow-out cycle scheduling |
| 541940 | Veterinary Services | Veterinary services providers delivering flock health monitoring, vaccination programs, and disease diagnostic testing for hatchery operations |
SBA Lending Summary
32
Total SBA Loans
$41.5M
Total Loan Volume
$1.3M
Average Loan Size
15 yrs
Average Loan Term
8.25%
Average Interest Rate
144
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[10] classifies Poultry Hatcheries (NAICS 112340) with a size standard of $3.5 million in average annual receipts. Independent commercial hatcheries serving layer replacement, specialty breed, and regional poultry markets typically fall within this threshold. Operations at or below this level 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 | First Bank of the Lake | 16 | $29.4M | $1.8M |
| 2 | Community Bank of Mississippi | 8 | $11.8M | $1.5M |
| 3 | The Huntington National Bank | 8 | $259K | $32K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for poultry hatcheries?
Poultry Hatcheries are classified under NAICS code 112340, covering establishments primarily engaged in hatching poultry of any kind, including broiler chicks, layer pullets, turkey poults, and specialty breed birds.
What is the SBA size standard for poultry hatcheries?
The SBA[10] sets the size standard for NAICS 112340 at $3.5 million in average annual receipts, qualifying eligible independent hatchery operations for small business lending and contracting programs.
What services do poultry hatcheries provide?
Hatcheries incubate fertilized eggs from breeder flocks, manage precise temperature and humidity conditions over 21-day (chicken) or 28-day (turkey) incubation cycles, and deliver vaccinated day-old birds to grow-out farms per USDA APHIS[5] health standards.
What factors drive poultry hatchery valuations?
Key valuation drivers include incubator and hatcher capacity, equipment technology level, biosecurity infrastructure, NPIP certification status, breeder egg supply contracts, customer agreements with integrators, and geographic service area coverage.
How does vertical integration affect hatchery valuations?
Most large hatcheries are owned by integrated poultry companies, limiting acquisition opportunities. Independent hatcheries serving niche markets command premiums based on customer diversity and market positioning per USDA ERS[4] poultry industry structure analysis.
What biosecurity requirements apply to hatcheries?
Hatcheries must comply with USDA APHIS[5] National Poultry Improvement Plan (NPIP) standards, including regular flock testing, sanitation protocols, visitor restrictions, and disease reporting requirements that protect the downstream poultry supply chain.
What capital investments are required for hatchery operations?
Major capital items include commercial incubators and hatcher cabinets, egg handling and sorting equipment, climate control systems, vaccination equipment, chick processing areas, and biosecurity infrastructure including air filtration and sanitation systems.
What production metrics matter for hatchery valuations?
Critical metrics include hatchability rates (percent of fertile eggs that produce viable chicks), chick quality scores, egg fertility percentages from breeder suppliers, energy efficiency of incubation systems, and customer satisfaction ratings per USDA NASS[3] poultry production tracking.
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]USDA APHIS aphis.usda.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]U.S. Census Bureau census.gov
- [8]USDA NASS poultry production surveys nass.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
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