September 23, 2024

 

Global demand surge drives EU broiler prices up amid poultry market growth

A global increase in demand for chicken has contributed to rising broiler prices across Europe during the summer months, Farmers Weekly reported.

 

As of mid-September, EU broiler prices averaged 277.75 Euro cents per kg (234p/kg), marking a 10 Euro cents per kg (8.4p/kg) increase compared to the same period last year.

 

In its latest quarterly poultry outlook, Rabobank suggested that market conditions in Europe would likely remain positive. The report noted that the peak in breast meat prices, coupled with lower feed costs, would support farm margins in the region.

 

However, Rabobank identified several risks that could impact trade and prices, including avian influenza, the implementation of the EU's deforestation regulations, and potential increases in poultry supply.

 

Broiler prices in the US had remained relatively close to EU prices during the first half of 2024. However, a price gap emerged over the summer, with US broiler prices declining.

 

Poultry consumption is expected to grow by up to 3% in 2024, according to RaboResearch. Strong trade is forecast for the second half of the year, driven by factors such as poultry's competitive pricing compared to other proteins, robust retail demand, a recovering food-service sector, and sustainability strategies that support chicken consumption.

 

Nan-Dirk Mulder, a senior animal protein analyst at RaboResearch, noted the importance of maintaining disciplined supply growth amid high risks. "In a context with ongoing high risks – such as animal disease, feed price volatility, and geopolitical tension – supply growth discipline is important to keep operating under balanced market conditions," he said.

 

The European Union is projected to be approximately 108% self-sufficient in chicken production by 2024, with output reaching nearly 13.6 million tonnes.

 

In the UK, Defra reported poultry production at 200,000 tonnes in July, an increase of 50,000 tonnes from the previous month. Production was also higher compared to July 2023, rising by 27,000 tonnes (9.3%).

 

The average live weight per bird at the point of slaughter in England and Wales stood at 2.3kg for broilers, returning to levels seen in previous years.

 

-      Farmers Weekly