August 3, 2006

Bird flu reflected in market swings for poultry

Bird flu is causing fluctuations in the demand and price for poultry in the EU, according to the latest agricultural forecast by the European Commission.

The report provides an insight into the forecast supply and prices for a wide variety of agricultural products.

Overall the Commission forecasts demand for meats will continue to rise, possibly pushing up prices.

For poultry, producers have managed to keep the glut on the European market in storage, helping to push prices up to about the same as it was a year ago.

The average EU price in June 2006 for whole birds was nearly at the same level as in June 2005 and 6.4 percent higher than the 5-year average from 2001 to 2005.

The report said bird flu would have little impact on the medium term outlook. Other factors such as the competitive price of chickens, strong consumer preference and increased use in recipes should boost or sustain poultry sales.  

New member states are expected to have stronger growth in consumption.

Poultry meat production, while remaining stable in 2005 is expected to decline slightly in 2006 due to bird flu

Following a 6.3 per cent decline in 2005 and a short-term recovery in 2006-2008, the EU poultry exports are expected to stagnate in the face of strong competition.

The EU's 25 members will continue to be net exporters of poultry meat, although at a declining rate as more and more imports begin to enter the bloc.