Recovery in poultry meat production exceeds expectations

European poultry meat production is showing a faster recovery than previously expected by EU market analysts. Growth of 1.1 percent was forecast this spring, but recent figures indicate a 2.5 percent increase.

Last year, poultry meat production experienced a 1.7 percent decline, according to EU analysis. The sharp declines in France (12 percent), Italy (9 percent) and Germany (3 percent) played a major role in this. Yet this was partially offset by a 6 percent increase in production in Poland.

Despite higher feed and energy prices in 2022, high demand for poultry meat led to price increases. With the current drop in energy and feed prices, a production recovery of 1.1 percent was already expected at the beginning of the year. Market analysts have now revised their forecast to 2.5 percent growth, with the possibility of further increase due to the effects of lower feed and energy prices.

Limited price increase

Poultry meat prices in the EU were 6 percent higher in June than in January, significantly lower than the 21 percent price increase in pork. In fact, the price for poultry meat fell slightly in June.

With higher prices, the EU is losing share in export markets. In addition, some countries are boycotting EU poultry meat because of outbreaks of bird flu, leading to an expected 3 percent drop in exports to these countries.

Poultry meat imports from Brazil, Ukraine and Thailand are expected to increase by about 18 percent this year. Combined with higher domestic production and the limited price increase of poultry meat relative to pork and beef, the EU forecasts an increase in annual per capita consumption of 1 kilogram, about 4 percent.This is almost double the previous estimate of 2.3 percent.

Nieuweoogst.nl