Recovery of global poultry meat markets: new trends and challenges

Global poultry meat markets have experienced challenging times in recent years, but current trends point to a recovery in the industry. According to Rabobank’s Global Poultry Quarterly Q3 report, markets are beginning to stabilize after four years of crisis, largely due to increased poultry consumption and supply growth.

Increased consumption and purchasing power

One of the key reasons for the recovery is the increase in poultry meat consumption, which is forecast to grow by between 1.5% and 2%. This is due to improved purchasing power of consumers, especially in developing countries. Southeast and South Asia are seeing strong growth in demand for value-added poultry products. Consumers are becoming more selective and willing to pay more for quality products, which opens up new opportunities for producers.

Lower feed prices

Lower feed prices have also played an important role in the recovery of chicken demand. More affordable feed makes poultry products more competitive in the market. This is especially true for countries where feed was under pressure due to high grain prices in previous years. However, despite positive trends, the industry is facing challenges, especially in China and Japan, where growth rates are above 3%, negatively affecting profitability.

Changes in international trade

With changes in trade flows, global trade in poultry meat is becoming more competitive. Declining imports in China, one of the largest markets, are creating new challenges for exporters. The US, Brazil and Russia, which have traditionally had a strong position in the Chinese market, are now looking for alternative markets. This could lead to a reallocation of trade flows and increased competition in other markets.

Risks and attention to operations

Despite the positive outlook, experts warn of the need for continued attention to industry operations. Feed costs have reached their lows, but grain prices are already starting to rise. This could put pressure on producers, especially with the possible onset of the La Niña season, which could negatively impact grain yields. Optimizing feed ingredient purchases and feed formulations therefore becomes critical to ensure business stability and profitability.

The recovery of global poultry markets offers new opportunities for producers, but requires a careful approach to managing resources and adapting to changing conditions. Success in this dynamic environment will depend on the ability to adapt to new challenges, optimize production processes and find new markets.