The global poultry industry has reported a strong second quarter in 2017, with +5% increases in poultry prices, compared to the first quarter, due to improved demand and supply restrictions, according to research by Rabobank.
Demand for poultry is reportedly “recovering”, with the industry currently benefiting from improved market conditions as avian influenza (AI) pressure has reduced significantly, following the northern hemisphere winter months, said Rabobank.
According to figures, China has recovered after the AI crisis in the first half of 2017, and although new cases of human AI are still occurring, demand recovery, together with tight supply, has shifted market conditions and lifted prices.
In Brazil, where the ‘meat scandal’ has caused exports to drop sharply in the second quarter, by 9%, the latest monthly export figures are reportedly matching last year’s record levels.Nan-Dirk Mulder, senior analyst - animal protein, commented: “Relatively tight supply in the aftermath of the 1H 2017 perfect storm, caused by AI and the Brazilian ‘weak flesh’ meat scandal, is another positive for the global poultry industry.
“On the other hand, demand is recovering as AI has faded from the headlines.”
The USA have gained market share against Brazil, the EU and China, with strong margins on high domestic prices, and according to Rabobank is in the lead “with a healthy supply/demand situation, ongoing disciplined poultry supply, together with strong domestic and international demand”.
In the EU, there have been relatively strong margins on tight supply, despite EU imports having dropped sharply by 10%.
The outlook for the global poultry industry is expected to remain strong, with a positive supply/demand balance in most global markets, due to effects of the AI crisis in the first half of the year.
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
