July 21, 2005

USDA: EU poultry and products annual report

One year after the accession of ten New Member States (NMS) to the EU, it appears that market integration is going well without any major disruptions, as was feared by some. 

The enlargement in 2004 initially provoked a significant import of poultry meat from the NMS into the EU-15, as a result of the price differential. Increased trade dynamics between EU-15 and NMS are expected to last. 

Production of broilers is increasing, albeit at a slower pace than domestic consumption, which is resulting in a decrease in the European oversupply of broiler meat. Domestic consumption is increasing faster in the NMS than in the EU-15, where per capita consumption has stabilized. 

The end of cheap imports of salted poultry meat at a reduced tariff in 2003 created a stable EU market in 2004 and 2005. With stable exports, imports are expected to increase in the future. 

Increased imports are mainly imported from South-America. Imports from Thailand are hampered by the Avian Influenza outbreak, although imports of cooked poultry meat are increasing. 

The imports are expected to increase in for 2006. However, it is yet unclear as to how much imports may increase again as a result of the WTO ruling against the EU ban on salted poultry meat imports.

For the full USDA report, click here.