Bullish global poultry demand lifts farmgate prices
© Tim Scrivener A global surge in demand for poultrymeat has helped to drive broiler prices up in Europe throughout the summer months.
EU broiler prices averaged 277.75 euro cents/kg (234p/kg) in mid-September, up by 10 euro cents/kg (8.4p/kg) on the same week last year.
Rabobank’s latest quarterly poultry outlook has suggested that bullish market conditions are likely to remain in Europe, with breast meat prices peaking and lower feed costs supporting margins on-farm.
See also: Avian influenza insurance now closed to new customers
It labelled the main risks to trade and prices as avian influenza, implementation of the EU’s deforestation regulations, and potential increases in supply.
Broiler prices in the US had been roughly in line with EU prices during the first half of 2024.
But a widening gap has emerged during the summer months, with prices in the US falling back.
Poultry consumption is forecast to increase by up to 3% during 2024, according to RaboResearch, with robust trade forecast throughout the second half of the year.
Senior animal protein analyst Nan-Dirk Mulder, of RaboResearch, said: “Poultry’s strong price position against other proteins in most markets, along with strong retail demand, recovering food-service demand and rising sustainability strategies that support chicken demand are supporting rapid growth.”
He added: “In a context with ongoing high risks – such as animal disease, feed price volatility, and geopolitical tension – supply growth discipline is important to keep operating under balanced market conditions.”
Poultry production
The EU is forecast to be roughly 108% self-sufficient for poultrymeat in 2024, with production at almost 13.6m tonnes.
Defra figures put UK production at 200,000t in July, up by 50,000t on the month. Production was also up on the same month last year by 27,000t (9.3%).
Average liveweights a bird at point of slaughter in England and Wales stood at 2.3kg for broilers, putting it back in line with previous levels.