Poultry industry to recover in the second half of the year
The poultry industry has a chance to recover in the second half of the year as it has the advantage of producing the cheapest meat protein with a short and flexible production cycle, says the latest Rabobank outlook for the sector.
Prices will see some recovery after historic lows in 1H. Breast meat should benefit from the reopening of foodservice, although trade will remain difficult. Dark meat will likely do better. Supply in some markets will be tight, due to reduced parent stock.
“Volatility could be exacerbated by ongoing challenges to balance supply and demand and by exchange rate instability. On the other hand, the relatively bearish feed price outlook will provide producers some relief on the cost side of their businesses,” says Nan-Dirk Mulder, Senior Analyst– Animal Protein.
Global trade will remain unstable in 2H. Although demand will recover, supply-demand imbalances, exchange volatility, and access issues could distort trade flows. A trend of buying local may also have an impact. Trade agreements and restrictions have the potential to keep shaking up global trade flows as well. The US-China trade relationship, Brexit, and a move in the Middle East to further improve food security are the main factors that could disrupt global poultry trade.
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