Global demand for chicken grows, but oversupply looms

The global poultry sector is benefiting from a strong rise in consumption, according to a recent report by RaboResearch. After a period of slow growth, chicken consumption is expected to increase by 2.5% to 3% in 2024. This brings the market back to historic levels, driven by lower production costs and a growing demand from retail and food service sectors.

While the global poultry sector is performing well, China and Japan are facing challenges. Both countries are struggling with local oversupply, caused by fast production growth combined with difficult economic conditions. This has led to falling prices and rising inventories. In particular, raw chicken imports to China and Japan dropped significantly during the first half of 2024.

Global trade remains robust despite uncertainty

Despite the issues in some markets, global poultry trade is expected to remain strong. Demand for chicken is increasing, especially in Europe and Asia, where the consumption of processed chicken and concept products is returning to pre-pandemic levels. However, geopolitical tensions and the threat of diseases like avian influenza continue to pose risks to the market. Brazil has been particularly affected by recent outbreaks, resulting in trade restrictions that have impacted global trade flows.

The outlook for the poultry market remains positive, but experts warn against the risks of excessive expansion, as seen in China and Japan. Controlled growth is crucial to maintain market balance and prevent further disruptions.