Global: Solid outlook for poultry markets amid concerns about oversupply

Published Sep 17, 2024

Tridge summary

The global poultry industry is experiencing rapid growth due to high demand and lower production costs, with the exception of China and Japan due to oversupply. Trade is expected to remain strong and demand for chicken to rise in the second half of 2024. However, volatility and risks such as animal diseases and geopolitical tensions can affect global trade flows. Avian influenza remains a challenge, with the European Union experiencing the lowest number of outbreaks since July 2019, while the United States has seen ongoing outbreaks. It is recommended that supply growth be disciplined to maintain balanced market conditions.

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

Original content

“Poultry’s strong price position versus other proteins in most markets, coupled with strong retail demand, recovering foodservice demand and increasing sustainability strategies supporting chicken demand are supporting rapid growth,” said Nan-Dirk Mulder, Senior Analyst for Animal Proteins at RaboResearch. Lower production costs and a strong recovery in demand in most markets provide global poultry industries with the means to deliver strong performance, but there are exceptions. Rapid production growth, combined with tougher 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 countries with large year-on-year declines in raw chicken imports in the first half of 2024. Most global markets are strong and balanced and overall trade is expected to remain healthy in the second half of 2024 and demand for chicken to rise. Trade is also forecast to ...

Source: Agromeat