European demand for chicken rises, supply shifts

The poultry sector continues to thrive in Europe, with a steady demand for chicken. However, Dutch production is declining, while other European countries are expanding, according to Rabobank.

Prices under pressure from rising supply

After a strong year for the broiler sector in the Netherlands and the EU, chicken prices have recently dropped. The increase in supply plays a significant role in this trend. Still, chicken remains appealing due to its favorable price compared to other meats. Supermarkets and the hospitality industry increasingly choose chicken to meet environmental targets, which helps sustain demand. Market prices are expected to recover later in the year as the balance improves.

Regional shifts in production

Production in the Netherlands is decreasing due to stricter regulations and a transition to more sustainable concepts such as the European Chicken Commitment. Meanwhile, production is growing in Eastern and Southern Europe due to lower costs and fewer regulatory restrictions. This shift has impacted Dutch exports, which fell by 7% in the first three quarters of 2024.

Feed prices and policy developments play a major role

Although feed prices have slightly decreased, uncertainty surrounding wheat and maize continues to affect the sector. Additionally, European agricultural policy is expected to provide more clarity in 2025, though sustainability goals like the Green Deal may pose ongoing challenges. For the Netherlands, this could mean further declines in production, while chicken imports from neighboring countries are on the rise.

The outlook for 2025 is positive, with anticipated growth in the European market. However, the sector remains highly dependent on international developments and local regulations.

Rabobank.nl