February 7, 2006

USDA predicts EU poultry consumption increase for 2006

In the latest USDA report released on EU-25 poultry and products, USDA said fears about the bird flu have resulted in decreased poultry consumption at the beginning of 2006, causing poultry prices to face downward pressure. However, USDA feels it is too early to say whether bird flu concerns will affect 2006 consumption levels compared to 2005.

The report predicts that for 2006, the EU broiler market will still show a moderate increase in production and consumption. There will be a slight increase in imports, while exports will be maintained at the 2005 level due to low prices. However, USDA warns that the 2006 outlook will worsen if the EU reports bird flu outbreaks due to infection by migratory birds. This could undermine the poultry industry as consumption will drop and exports will be banned.

According to USDA, EU broiler production for 2005 was at the same level as 2004. USDA noted that increased production in the new member states made up for the fall in production in the EU-15. Higher imports were caused by increased consumption while exports fell due to increasing competition from Brazil and Thailand. The report mentioned that 2005 consumption was only lightly affected by bird flu concerns.

For 2006, broiler production is predicted to increase slightly. This is because Poland's production increases will more than compensate for production falls in France. Brazilian and Thai imports into the EU are forecasted to increase while domestic consumption of poultry is predicted to rise slightly too. 

For the full USDA report, click here.