The outlook for the European poultry market stays strong however “supply growth” may put pressure on rates and margins while bird influenza stays a danger, according to a brand-new research study report from Rabobank.
The Global Poultry Quarterly report released by RaboResearch highlights that the outlook for the European poultry market “remains relatively strong” however likewise sounds a caution that “avian influenza is a wild card”.
“Keeping supply in balance with market will be essential for manufacturers. This will be particularly essential in the European summertime when bird influenza dangers are lower.
“Later in the year there will also be new cost price inflation risks, mainly caused by energy prices, which will depend on how the Ukraine war develops and on whether Europe is able to replenish its gas stocks”.
Latest analysis reveals there was a 4% year on year drop in chicken production in quarter 4 2022 in the European Union (EU) which production of turkey likewise fell by 7% and ducks by 20%.
The latest research study likewise highlights that tight supply stays a continuous problem in Europe with break outs of bird influenza resulting in “culling and restricted expansion” and high production expenses have likewise, according to RaboResearch, required little smaller sized and mid-sized gamers to decrease their supply.
Researchers discovered that Germany, France and the Netherlands all reported a decrease in poultry production in quarter 4 in 2015 which this pattern has actually continued into this year.
RaboResearch has actually shown that poultry production is most likely to step up in the very first half of 2023 and although it anticipates pressures around bird influenza issues to stay it anticipates that this will relieve over quarter 2 and quarter 3.
The latest report likewise highlights that with present market needs in the EU there have actually been “ongoing import demand” with overall EU poultry imports in quarter 4 in 2015 increasing by 6% to 227,000 metric tonnes.
Imports mainly originated from Brazil, Ukraine and Thailand. According to RaboResearch imports from the UK visited 30% “due to tight local market conditions and high local prices”.
