Strong year expected for poultry industry

The outlook for poultry farming in Europe and the Netherlands is positive, but it comes with challenges. Demand for chicken remains as strong as ever, while global supply remains tight due to the impact of bird flu and high production costs. As a result, production is limited, which has led to continued relatively high prices for broilers in Europe. 

Despite increasing supply in recent months, prices still remain high. In the fourth quarter of 2022, European chicken production fell by about 4%, while turkey production fell by 7% and duck by 20%.

European market is attractive

European chicken imports rose 6% in Q4 2022, mainly from Brazil, Ukraine and Thailand. Imports from the UK fell 30% due to local tight market conditions with high prices and difficulties in finding sufficient staff at processors. On the export side, the situation is more difficult for European exporters due to restrictions on trade due to bird flu outbreaks in Europe and high EU prices. Total European export volumes fell 15%, with the main export market the UK down 11% to 130,000 tonnes.

Also high costs

Besides high market prices, producers face high costs, with feed costs accounting for 60-70% of total costs. Rabobank expects feed commodity prices to remain high, albeit at a slightly lower level than in 2022. Although production is expected to increase during the year, global supply remains tight, which continues to pose challenges for producers.

Rabobank.nl
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