International

Global poultry market to face additional challenges

Poultry

The pressure put on foodservice and trade by COVID-19 will remain present in the first half of 2021.

Posted on Dec 29 ,11:05

Global poultry market to face additional challenges

Poultry industry will experience at least another 6 months of turbulence in the global market as the pressure put on foodservice and trade by COVID-19 will be felt in the first half of 2021, according to the latest report from Rabobank.
Covid-19 will place ongoing pressure on foodservice and trade, and the consequent slow economic growth will lead to more price-driven market conditions. As market fundamentals appear challenging for 2021, the poultry industry should prepare for a tough year. “Looking forward, we see four main challenges for the global poultry industry: ongoing Covid-19 impacts on markets, high and volatile feed prices, China’s African swine fever recovery, and the northern hemisphere avian influenza crisis,” according to Nan-Dirk Mulder, Senior Analyst – Animal Protein.

The disruptive factors affecting global poultry markets in 2021 will require traders to refocus. Falling demand in China and Vietnam will push traders to find other markets, which will depress global markets in 1H. In 2H, stronger control over the spread of Covid-19 should lead to a gradual recovery of foodservice markets. This will greatly help global traders. But before recovery takes place, big stock levels need to be unwound.
The ongoing tough economic conditions will challenge all poultry companies and will require a very disciplined supply strategy and a strong focus on procurement and cost control.

 NEWSLETTER - Stay informed with the latest news!

Comments





Similar articles

International

Global mentorship programme for women in the meat industry

A new mentorship initiative aims to improve career opportunities for women in the global meat ind...


Read more Read more
Denmark

Danish pig herd is growing

At the beginning of 2021, Danish pig inventory has increased by 5.2% compared with the same perio...


Read more Read more
Spain

Spanish butchers are adding more women to their teams

Two years ago, most of the wannabes' Butchers in Spain were represented by men. However, there is...


Read more Read more
Websolutions by Angular Software and SpiderClass