July 5, 2023

Strong second half of 2023 expected for global poultry industry

According to a report by Rabobank, the global poultry industry is expected to experience a robust second half of 2023, fuelled by lower feed prices and improved value chains, Food Manufacture reported.

Despite concerns about potential avian influenza outbreaks, Rabobank research predicts that lower production costs will boost the prospects of the global poultry market.

Poultry value chains are benefiting from cheaper grains and oilseeds, contributing to their positive outlook. Furthermore, global trade in poultry has continued to grow, reaching 3.5 million metric tonnes in the first quarter of 2023.

The stability of the global supply balance, coupled with high prices for alternative proteins like pork, eggs, and beef, may make poultry products more attractive to consumers, who are grappling with rising costs.

Nan-Dirk Mulder, the animal protein senior analyst at Rabobank, said that key markets are expected to increase their import volume due to the lower prices. The report highlights that global feed prices are projected to decline further, with estimated costs for 2023 anticipated to be 10% to 15% lower than the historic highs of 2022.

While the overall outlook is positive, the report cautions about the possibility of Highly Pathogenic Avian Influenza (HPAI) outbreaks in China and Brazil. Although Brazil witnessed a 17% year-on-year increase in poultry exports during the first quarter of 2023, importers have already implemented precautionary measures to safeguard against future outbreaks. Turkey, Argentina, and Chile have all faced trade restrictions due to HPAI concerns.

Mulder said that Brazil, particularly its poultry-producing southern states, remains at high risk if an HPAI outbreak occurs in commercial flocks. The ongoing vigilance and preventive measures in the poultry industry are crucial to maintain the positive trajectory of the global poultry market.

-      Food Manufacture