The global poultry industry has experienced gradually improving market conditions in the first half of 2019, according to the recently released Poultry Quarterly report from Rabobank.
The report, which can be accessed online, offered observations and projections for the industry in various global markets. Here are seven highlights from the report, based on geographic region:
1. Mexico
Demand for poultry should remain favorable in the coming months. Rabobank anticipates full-year consumption at 4.4 million metric tons, which would be a year-over-year increase of 3%. Demand for further-processed chicken remains positive with increasing consumption of such products.
2. Brazil
The country’s benchmark live broiler price hit a record high in May, having gone up 27 percent since January. This increase was driven largely by accelerated exports of all major animal proteins from Brazil.
3. Europe
The European Union market is experiencing ongoing demand growth, but there are concerns of a potential oversupply situation due to proposed industry expansion in eastern Europe. Five new processing plants are in the pipeline for the next two years.
4. South Africa
The poultry industry in South Africa continues to struggle amid rising feed grain prices and continued competition from imports from the EU.
5. Japan
The Japanese poultry industry is currently rebalancing the market through reduced imports, but this may not be enough to compensate for a gradually rising local poultry supply.
6. Thailand
Better broiler prices, marginally lower feed costs and consistent export volume growth have contributed to improved margins for Thai poultry integrators. Rabobank expects those margins to expand further in the second half of the year.
7. Indonesia
Poultry integrators in Indonesia reported lower earnings in the first quarter when compared to those of the same period in 2018. Rabobank expects earnings to rebound due to lower feed costs, peak seasonal demand and broiler price recoveries.
