February 13, 2006

Weaker outlook for Japanese poultry market in 2006

International concerns about the bird flu have resulted in a weaker market outlook for the Japanese poultry industry, according to a USDA's Jan 27 report on Japanese poultry and products,. Japan's total broiler consumption in 2006 is predicted to stay stagnant from last year's level at 1.88 million tonnes.

Total imports are projected to be lower by 4 percent to 720,000 tonnes. Furthermore, the large beginning stocks of uncooked broiler meat, forecast to be 40 percent higher than last year's beginning stocks, will affect import demand for broiler meat in 2006.

Although Japan has had several domestic outbreaks of bird flu in recent years, the country has been quick and effective in containing them, by putting in place strict quarantine and prevention measures. This has made the impact of bird flu on domestic production and market minimal.

Reviewing the 2005 Japanese poultry market, the USDA said the market picked up very well in the first half of the year with prices remaining high and increased domestic production.

However, the second half saw a slowdown in overall consumption. This was partly due to lethargy in the food service sector and flat household consumption. 

For the full USDA report, click here.