EU broiler production seen slowing in 2009

EU chicken production increased in 2008, fueled by rising export demand and internal consumption. However, the negative impact of the global financial crisis on meat consumption is expected to slow down broiler production growth to below 1 percent in 2009, according to a US Department of Agriculture attache report posted Wednesday (March 4) on the Foreign Agricultural Services Web site.

In 2008, EU-27 chicken meat exports grew significantly (+ 16 percent), exceeding imports. Russia, Saudi Arabia and Ukraine remain the major customers for EU chicken meat. While EU exports are likely to be affected by the financial crisis, they may benefit from the slated 2009 Russian ban on PRTs. In 2008, EU-27 chicken meat consumption continued to grow despite rising prices due to higher feed costs. It is expected that consumption will continue to grow in 2009, albeit at a slower pace, as chicken meat is likely to partly replace more expensive red meat.

In 2008, strong internal and export demand fueled increased poultry production in the EU-27. However, the negative impact of the global financial crisis on meat consumption is expected to keep broiler production growth to below 1 percent in 2009.

EU-27 broiler imports grew in 2008, albeit more slowly than in 2007, and are likely remain stable in 2009. Brazil, the EU's main supplier of chicken meat, is expected to fill its 2008/2009 tariff rate quota (TRQ).

Based on strong exports in 2008 (+ 16 percent), the EU regained its positive trade balance in chicken meat after being a net importer in 2007. Saudi Arabia, Russia and Ukraine were the major export destinations last year. While exports are expected to remain stable in 2009, demand could be affected by the impact of the world financial situation on major export markets, such as Saudi Arabia; by whether Russia implements a ban on poultry imports treated with Pathogen Reduction Treatments in 2009; and by whether the EU increases export restitutions to African countries and Ukraine.

In 2008, EU-27 chicken meat consumption continued to grow, despite rising prices, and should continue to trend upward in 2009 but at a slower rate. Chicken is a relatively low cost protein source which often replaces more expensive red meat.