International

Global poultry industry is witnessing a relatively strong performance

Poultry

The global poultry industry saw a relatively strong second quarter in 2017 with a 5% increase in the global index compared to the first quarter of this year. The improved demand and the supply restrictions resulted in significant increases in the poultry prices, according to Rabobank's �Poultry Quarterly Q3 2017� report.

Posted on Sep 22 ,14:07

Global poultry industry is witnessing a relatively strong performance

 

The 1H 2017 AI crisis generated the main supply restriction, outbreaks of the disease appearing in many countries of Europe, Asia, and Africa. Another major factor for restricting supply was the difficulty in trading breeding stock, leading to low supply in markets like China, Thailand, and several other Asian countries.

Analysts at Rabobank say that consumption in many markets has recovered thanks to a reduction of AI cases that resulted in the media shifting away from the subject. Also, better-than-expected prices of pork and beef supported the poultry industry, despite the short hike in wheat prices in July.

The big change that Rabobank analysts observed compared to the previous quarter was the recovery of China. “The impact of low breeding stock imports, together with environmental regulations, is affecting the market, while demand has recovered because AI has more or less faded over the summer.”

Most major poultry markets have recovered and have strong performances. The US ranks first in this aspect, having a "healthy supply/demand situation, ongoing disciplined poultry supply, together with strong domestic and international demand."

The EU poultry industry reported a relatively good performance. The main reason for this was the low supply in the aftermath of more than 1,000 AI cases in the winter months and also the currently reduced supply from Eastern Europe.

Russian poultry industry is also doing relatively well, having a strong demand from the regions, especially the far east and east.

Furthermore, Rabobank analysts observed a relatively strong poultry industry in other Asian markets, despite the fact that India was hit by a seasonal drop due to festivals and it is projected to recover in the fourth quarter. In Indonesian markets the situation is starting to recover, having the support from the government’s programme to cull numbers of parent stock.

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