March 13, 2008

EU broiler production to grow by 1 percent in 2008 on robust demand

EU's broiler production is expected to grow by 1 percent from 8.1 million tonnes in 2007 to 8.2 million tonnes in 2008 on robust domestic consumption, resumption in UK production and investments in Eastern Europe, the USDA said.

In 2007, the EU broiler market recovered from a 2006 decline triggered by bird flu crisis.
 
This year, chicken meat consumption is expected to grow as poultry remains an attractive, low cost protein source for EU consumers.
 

EU's broilers imports grew significantly in 2007, and are expected to increase in 2008, although at a slower pace.

Brazil remains as the major supplier of chicken meat to the EU, and is expected to fill its 2007-08 tariff rate quota (TRQ). Even over-quota imports in 2008 may still be profitable for Brazil poultry exporters.

An EU Food and Veterinary Office (FVO) report on poultry was critical of Brazil's ability to conduct serological analyses, especially in the case of a future bird flu outbreak. However, the department confirmed that the hygiene conditions for slaughter, cutting and processing of poultry meat were generally satisfactory in Brazil.

Meanwhile, poultry exports from the EU are expected to decline this year.

France, EU's main chicken meat exporter, continues to lose market share to Brazil in Middle East and Sub-Sahara African markets. 

Analysts expect the EU to become a net importer of chicken meat this year.