Volatile market context ahead for poultry producers
The most challenging mission for the global poultry industry is to balance supply and demand in the following months as the foodservice sector in several countries may be subject to restrictive measures in front of the second wave of COVID-19 infections. Possible new waves of Covid-19 will add to the market ups and downs, and the impact of a deep economic crisis will make markets more price-driven, says the latest poultry outlook issued by Rabobank.
“Over the whole year, we expect a slight increase in global poultry production, mostly as a result of poultry expansion in China and Vietnam, where African swine fever has reduced pork availability, and also from expansion in the US. The rest of the world will be operating in an environment of shrinking production,” according to Nan-Dirk Mulder, Senior Analyst – Animal Protein.
Global trade has become difficult, with most import markets reducing volumes. Trade into ASF-affected markets like China, the Philippines, and Vietnam has become more important, and this raises risks as local production recovers. Exporters like Brazil, the US, and Russia are focused on China, with export volumes expanding quickly, but with price concessions.