Where next for the European poultry, egg sectors?

The European poultry industry faces numerous challenges, but the collaborative exercise to find solutions, organized by WATT Global Media, MEAP and VIV, saw the sector come up with plenty of solutions.

Clements 90x90 Headshot Headshot
Subscribe to Magazine
“You have to realize that that the world is changing and the whole social context is going to be much more important that it has ever been before,” said Nan-Dirk Mulder, Rabobank senior analyst animal protein. Jackie Roembke.
“You have to realize that that the world is changing and the whole social context is going to be much more important that it has ever been before,” said Nan-Dirk Mulder, Rabobank senior analyst animal protein. Jackie Roembke.

The European poultry and egg sectors must become more transparent, innovative and disciplined to overcome current market challenges and to take advantage of the increase in demand over the remainder of the decade.

Poultry and egg producers must focus more on sustainability and welfare, perfect their messaging and be prepared to shout about their successes.

The post-COVID-19 road to recovery has already become littered with new obstacles, and plenty of old issues remain. These problems can be overcome, and this was the focus of the Poultry Marketing Round Table (PMRT) Europe Edition, organized by WATT Global Media, MEAP and VIV and held at VIV Europe earlier this year.

PMRT brought together key industry experts to share their views on the market, its challenges and possible solutions. Its focus then turned, with delegates asked to present their views on where the key challenges lie, and how they could be solved.

Market volatility 

The European market remains challenging and highly volatile. The region’s producers have lived through declining foodservice, peaking retail demand and, additionally, more avian influenza outbreaks than ever before and rising feed and other input costs.

Feed prices are continuing upwards, due to the war in Ukraine, as are other input costs, including energy, labor and transport, all of which are causing headaches for the sector.

To survive these issues, Nan-Dirk Mulder, Rabobank senior analyst animal protein, told delegates that, in the short term, they must work with the market being price driven. Demand from food service, for example, may have recovered strongly, but this recovery is highly price sensitive. And producers must keep a firm eye on controlling costs.

Looking further ahead, Europe’s demand for chicken meat is forecast to remain strong, growing by an additional 1 million metric tons by 2027, but the market will continue to undergo significant change.     

This change will be social, and the challenge for producers will be, on the one hand, to fine tune their businesses, products and supply chains, while, on the other, developing an open strategy towards society and growing their communication. They will need to adopt the latest innovations in the sector to maintain efficiency while demonstrating how their businesses operate.

Change for the better? 

While echoing Mulder that the outlook remains positive, Francois Cadudal, senior consultant with food consultancy Gira, questioned whether some of the changes in the sector will be beneficial and how much room producers have to respond.

He noted that Europe has seen its worst outbreak of avian influenza ever, not simply in terms of duration, but also when viewed by number of countries affected and birds slaughtered. Interest in vaccination is increasing, he continued, but vaccination can only ever be a tool, it will not be a solution to the disease.  

Francois Cadudal 2"Only the cheapest, value for money cuts will fare well in this inflationary context," warned Francois Cadudal, senior consultant with food consultancy Gira. Jackie Roembke.


Like Mulder, he expressed concern about the return of inflation, noting that consumers are already reducing food purchases. Poultry may benefit when consumers reign in spending, but the benefits are not evenly spread, and it is cheaper poultry cuts that gain the most.

While recognizing the need for cost control, he argued that this is not an easy task, due to the industry already being very lean and very efficient. This has served the sector well, but it means that there is little fat to trim.

This very efficiency, however, could increasingly be harmed by the adoption of concept birds, which could be viewed as a long-term threat to the sector.

Chicken consumption, Cadudal reminded delegates, has grown in response to the industry becoming ever-more efficient and providing a low-cost product. Concept birds, such as slow growing broilers, remove some of this efficiency, making chicken meat more expensive.

Concepts mainly account for only a small percentage of Europe’s production, but if adopted more widely, as NGOs would like, the region’s competitiveness will be threatened. The role of the producer has, all too often, been forgotten where concepts are concerned, and whether producers can respond quickly enough to new demands ignored.  

Investing in eggs

Like broiler producers, the egg industry faces numerous pressures, and all too often demands are based on a lack of understanding of the industry.   

Vincent Guyonnet DVM, managing director of FFI Consulting, noted that while the egg industry may be in a favorable position where, for example, sustainability and welfare are concerned, this does not make it immune to NGO pressures. 

Various NGOs have run highly effective campaigns pressuring retailers to only source eggs from cage-free systems, for example. These campaigns have not been science-based, rather, they appeal to emotion, and perhaps the egg sector should do the same, he continued.

Producers can counter these pressures, Guyonnet added, and numerous options are available to keep the market growing.

Vincent Guyonnet 3"There is a tremendous opportunity for growth for the egg sector, but one thing is sure, our consumers are changing, and we have to change too," argued Vincent Guyonnet DVM, managing director of FFI Consulting. Jackie Roembke.


Marketing campaigns encouraging consumption, for example, work. Data from countries that have invested significantly in egg marketing reveals tremendous consumption growth. Today’s campaigns, however, must be smart, using appropriate channels to target younger consumers.

Modern technologies need to be adopted broadly. Digital technologies applied on farms can improve not only productivity, but also bird health and welfare.

The poultry and egg sectors are already data rich, Guyonnet noted, but if that data is not digital it cannot be used to maximum benefit. Once data is digital, maximized and artificial intelligence applied, production predictions can be made.  

The sectors also need to adopt greater automation. The fragility of labor was exposed during the pandemic, and greater automation on farms, at packing stations and in processing plants would make the sector more robust.

Additionally, the egg industry needs to be continuously innovating and developing its product offering for both retail and foodservice.

The view from retail

Framing an approach that would serve any industry well, John Kirkpatrick, agricultural manager poultry and eggs with retailer Tesco, said that his company was “trying to serve its customers, community and planet a little better every day,” especially at this time of heightened challenges.

He continued that the company’s vision was to have very honest communication with suppliers, farms and key manufacturers and stakeholders, and to make sure that the group’s customers are absolutely clear on what Tesco is doing as a business. It was the strong relationship with suppliers and farmers that allowed the company to deliver for its customers long term, he said.

If the industry wants to succeed, it must step up to the plate, he continued, with science, evidence and fact, removing emotion from the conversation. Ultimately, he said, we want to reassure customers that we are a responsible retail business.  

Kirkpatrick detailed numerous projects where Tesco is putting its vision into practice, for example in developing decarbonization plans and deciding how to develop the agriculture sector going forward, imagining what it will look like in 5-10 years.   

The work is not only good for the planet, but provides an opportunity to talk to customers, to engage and enthuse them, Kirkpatrick noted.

He continued that the company was lobbying the U.K. government to allow insect protein in animal feed. Significant investment in insect protein will allow Tesco to reduce its environmental footprint. The approach may be ambitious, but Kirkpatrick feels that it is the right route, and wants to see Tesco’s supply chains move in a similar direction over the next three to five years.

Another area of focus is waste reduction, and where, for example, the company is working with poultry producer Moy Park. How much waste is being created, what it actually is and whether there are hotspots are all coming under the microscope, which will allow the business to become more efficient.

Tesco is moving towards verified, deforestation-free soya. This is an area that needs to be turbocharged, Kirkpatrick believes, and will allow the retailer to reassure consumers that it is doing the right thing on their behalf.     

While sustainability and welfare standards are no longer simply nice to have to keep consumers happy and must be central to any business, producers also need to keep an eye on innovation and premiumization, and Tesco is also investing heavily in this area.

John Kirkpatrick 4“We need to continue to challenge ourselves and to challenge ourselves well. We need to be able to reassure customers that we as a business do the right thing on their behalf,” John Kirkpatrick, agricultural manager poultry and eggs with retailer Tesco. Jackie Roembke.


What you said…

PMRT Europe Edition attendees were asked to distill their thoughts on the issues affecting the European broiler and egg industries and offer their own solutions.

Across the various work groups that were formed following the presentations, there appeared to be a consensus that the industry is suffering from a messaging issue, both internally and externally.

Poor messaging and a lack of preparedness hands the agenda to others, delegates agreed, be it to the press or to NGOs, and the industry must be better prepared.

Among concerns over communications and suggestions for better messaging were the following:

  • If we do not control messaging, activists and journalists will.  
  • Too much messaging can lead to a mess. Could a single body prepare unified messaging, particularly for use in times of crisis?
  • Scenario planning is hugely important. The industry must constantly consider what could happen, and constantly stress test.
  • We need to be more proactive and tell our stories first. If NGOs are first, we have an uphill battle to fight.
  • We need more activity on social media.
  • The industry should consider moving messaging away from what it doesn’t do, i.e. cage-free or no antibiotics, to what it does do.
  • More attention needs to be paid to human health and nutrition in messaging, and myths must be countered.
  • The industry must be proud of what it does and blow its own horn!
  • Times of crises are the perfect opportunity to bring science to the fore, but complex messages must be distilled down to resonate with consumers.
  • Interaction and communication are highly important for relationship building, and trust, at all levels, is the most important element for success.
  • There needs to be greater understanding of each other’s perspectives.
  • We need educational programs in our schools to help teach children where their food comes from.
  • The industry must continue to offer consumers choice. 
  • Concept birds are likely to be very market specific, and NGO’s will remain dominant in the concept conversation. 


Middle East’s poultry sector spotlights crisis management   


Subscribe to Magazine
Page 1 of 1576
Next Page