February 26, 2007

EU poultry production in 2006 to be 2 percent below that for 2005

A German market analyst says EU poulry meat production was down about two percent last year because of bird flu.

German market analyst, ZMP, reports that EU poultry meat production was hit in 2006 by bird flu, although none of the cases was recorded in large-scale poultry farms.

Consumer fears in many countries led to plummeting sales in the first quarter of the year, although demand and prices recovered during the second quarter, ZMP said.

Meat production in the EU is expected to decline two percent on-year in 2006 to 10.77 million tonnes.

The confluence of rising feed costs and bird flu fears caused a significant drop in profitability last year.

Corn prices have soared since the end of the year as the region ramps up its biofuel production.