Strong outlook for the global poultry markets amid oversupply concerns

Published 2024년 9월 16일

Tridge summary

The global poultry industry is experiencing rapid growth due to high product prices, strong retail and foodservice demand, and increasing sustainability trends, particularly favoring chicken. However, this growth is not uniform across all markets, with oversupply and low prices in China and Japan due to fast production growth and local economic challenges. Despite these hiccups, global trade is expected to remain strong and possibly increase in the second half of 2024. However, factors like weak demand for chicken feet in China, concerns over avian influenza, and geopolitical tensions could introduce volatility. The risk of oversupply underscores the importance of supply discipline to maintain balanced market conditions. The article also mentions specific outbreaks of Newcastle disease in Brazil and the impact of avian influenza on chicken production in the United States and Europe, highlighting the ongoing challenges in the poultry industry.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

“Poultry’s strong price position against other proteins in most markets, along with strong retail demand, recovering foodservice demand, and rising sustainability strategies that support chicken demand are supporting rapid growth,” said Nan-Dirk Mulder, senior analyst of Animal Protein at RaboResearch. Lower production costs and solid demand recovery in most markets provide global poultry industries with the means for strong performance, but there are exceptions. Fast production growth, in combination with more challenging local economic conditions and lower consumer confidence, has led to oversupply, with relatively low prices and rising stocks in China and Japan. These conditions have also affected imports to the countries with large year-on-year drops in raw chicken imports in the first half of 2024. Most worldwide markets are strong and balanced and overall trade is expected to stay healthy in the second half of 2024 and increase the demand for chicken. Trade is also forecast ...

Source: Meat+Poultry