June 12,  2017

Global poultry 'performing well'-report

Despite the pressure of avian influenza (AI), global poultry is performing well with profitability in most regions in the world, according to this year's second-quarter report on global poultry put out by agricultural lender Rabobank.

The big exception, it added, is China, where the negative impact of human AI cases has kept prices down.

"Global poultry trade has reached record-high levels, but trade streams have shifted", RaboResearch Senior Animal Protein Analyst Nan-Dirk Mulder said. "The US and, to a lesser extent, Thailand have been the winners in this trade shake-up, due to AI-related restrictions and the impacts of the 'meat scandal' in Brazil".

The report noted that human AI cases in China were still spreading and impacting the market, although prices have recently somewhat recovered. The bird-flu virus is feared to further spread in China, particularly to northern regions. Many live bird markets have been ordered closed, although imports are relatively unaffected, as they serve the processed meat market.

The Brazilian meat scandal also has had a significant impact on global trade as exports from the South American country have been dropping since March (April: -23%). "This has created an additional shift in global trade streams, on top of the AI-related impact", the reports said.

"The US has been the winner, with European exporters also taking some of the Middle East trade", the report added.

Other global markets are performing well, too, with a combination of strong demand, restricted supply and low feed costs, the Rabobank report said. "Industries in Mexico, India, Thailand, and Japan are performing particularly well, while South Africa and the EU are on the road to recovery".