February 5, 2008

EU poultry market growth to be curtailed by high feed costs

EU's poultry industry this year has been projected to remain stable after the previous year's recovery from the effects of bird flu, yet any growth in the market would be modest due to high feed costs.

Bord Bia, the Irish food board, said in its Export Review and Outlook 2007/2008 that Irish production rose by 3 percent and broiler output by 7 percent, gaining exports of EUR253 million (US$375 million), up by 5 percent against 2006.

The board predicts that the EU market for poultry in general will remain stable with production and consumption levels growing by 2 percent. A modest increase in poultry prices is also apparent.

Major growth in output would be impeded by high feed costs, energy packing and labour, according to Bord Bia. However, if output does increase significantly, it could put pressure on poultry prices.

Furthermore, if imports from Thailand and elsewhere increase, there will be an added competitive pressure in EU markets.