21 Jul 2021

The outlook for the global poultry industry continues to improve: Rabobank



AUTHOR

AviNews International Team

Diamond V

Content available in: العربية (Arabic)

The first half of the year have been marked by intensive movements in the poultry market. Several outbreaks of avian flu registered in Europe, Asia, and Africa caused shortages in different countries, moved the prices up and down and many trading bans were imposed. On the other hand, the high feed price affected by the volatile price of corn and other grains tightened the production of some growers all over the world.

However, as vaccination rates increase the reopening of economies seems to be accelerated, contributing to an improvement in poultry demand. Food services – which account for one-third of the global demand – are favored by fewer restrictions and greater participation in the market.

According to the Poultry Quarterly Q3 2021 report from Rabobank, improved conditions are being observed in different markets such as the U.S., Mexico, Russia, and Japan. Still, avian influenza continues to be a limitation in the northern hemisphere affecting Europe, the Middle East, and Africa.

 

“The most challenging and uncertain conditions can still be found in China, Brazil, and India. The outlook for China will also impact global trade conditions. Increasing local meat supply is impacting meat prices significantly, and this will have knock-on effects on global trade in terms of prices and volumes. This is not good news for Brazil, which has been struggling with the impact of Covid-19 on global markets and high local feed prices. China has been one of few global growth markets for Brazil. “

In local markets, The U.S. increased 4.4% production with respect to the same period last year. Although it suffered a cyberattack in June, no repercussions are expected in the market.

 

On May 1 breeding flock was 4.8% larger than a year ago, suggesting producers are moving to replace genetics and offset productivity challenges.

Although chicken prices are at a record high and some products like boneless, skinless breast meat and wings contribute to the increase in the poultry market, there are still labor shortages that have decreased the frozen inventory.

Highlights from other regions:



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