Actually, it will increase the cost of production.

Say you make and sell widgets. The fixed costs of the mortgage, property taxes, electricity, fuel, and the like will not change if you produce 1000 widgets or 500.

Therefore, you have to raise prices to cover the fixed expense you pay per month and therefore the cost per each rises.

The bank and city governments are not cutting the chicken farmers a break because they have 25,000,000 less birds. They expect their bills to be paid each month.