Italy’s poultry meat production suffered its biggest decline on record last year, with 2022’s 1.21 million metric tons almost 12% below that of 2021. The country’s poultry meat output came close to the lowest level recorded over the last decade.
Various factors contributed to the contraction. Substantial production cost increases and the geopolitical situation played their part, but the primary cause was Europe’s worst ever outbreak of highly pathogenic avian influenza (HPAI).
Agrifood institute ISMEA, reporting in April this year, noted that Italy fell from being 107.8% self-sufficient in poultry meat to 100%. Lower supply resulted in exports, down by 24%, being diverted to the home market, where high prices made local sale more attractive. Importers also sought to bring more poultry meat into the country, and the institute notes that the rise in imports last year was exceptional.
It was not, however, simply lack of supply that pushed prices higher, production costs also rose significantly. ISMEA notes that costs, particularly for feed, reached double digit increases. Nevertheless, the industry was able to pass these higher input costs on to consumers.
Between October 2021 and March 2022, broiler and turkey farm gate prices increased by over 50% and reached a record high in April. This was followed by a period of stabilizing, but still healthy, prices. Prices continued positively into 2023, albeit with increases at a lower level recorded in both February and March.
Returning to pre-pandemic levels
Italy’s poultry producers’ association UNA Italia, additionally forecast in April that, with the current economic outlook and in the absence of crises occurring, the country’s broiler production should return to pre-pandemic levels. It also forecast that consumption would rise.
While prices continued to recover during the first quarter, they were significantly below the spikes recorded 12 months previously.
According to local industry association Unaitalia, the industry is currently going through a period of normalization following two difficult years, adding that production costs have now partly stabilized.
It continues that, while inflation may continue to deter Italians from buying meat, it will be competitor proteins that suffer. Demand for poultry meat is expected to rise by 12% this year.
Italian poultry industry optimistic despite tough 2022
