Weekly Product Updates

W1 Chicken Update: South Korea's Chicken Self-Sufficiency Drop to 76.9% and Poland's Record-Breaking Broiler Chicken Production Surge by 10 Million YoY

Frozen Whole Chicken
Published Jan 12, 2024
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Self-Sufficiency Rates in South Korea Plummets by 11.2% YoY in South, Escalating Imports

Due to the continuation of the quota tariff policy over the past three years, the chicken self-sufficiency rate in South Korea reached an unprecedented low. The rate fell below 80% for the first time in 2023, alarming the government's target of achieving 82.4% chicken self-sufficiency by 2027. The provisional calculation for 2023 by the Agricultural Observation Center of the Korea Rural Economic Institute reveals a self-sufficiency rate of 76.9%, marking a drastic decline from the 12-year high of 88.1% in 2020. This trend aligns with the government's tariff quota policy, which eliminated tariffs on imported chicken by 20 to 30% in H2-2022 and has since been consistently enforced.

Consequently, chicken imports surged from 124 thousand metric tons (mt) in 2021 to 239.7 thousand mt in 2023. Critics question the viability of the government's self-sufficiency target amid escalating imports, and concerns arise about the impact on price stability. The domestic broiler industry suggests redirecting resources from tariff quotas to support farms and industries to safeguard food security and stabilize prices. Industry experts emphasize the need for attention and support measures for broiler chicken producers, highlighting the potential to achieve both supply-demand stability and the government's self-sufficiency goal.

The National Statistical Office's Consumer Price Index indicates a 9.4% year-on-year (YoY) increase in chicken prices in 2022 and a 5.1% month-on-month (MoM) growth in 2023. Consumer Public Interest Network points out three years of price increases for major chicken franchises, prompting a 59.3% response from consumers who reduced purchases or switched to lower-priced brands. Concerns arise that these price hikes may increase reliance on imported products, impacting the domestic chicken industry.

Poland's Poultry Industry Hits Record Highs

In Oct-23, the Polish poultry industry achieved a historic milestone by producing the highest monthly output of hatched broiler chickens on record. The Polish National Chamber of Poultry and Feed Producers (KIPDIP) reported that nearly 136 million broiler chickens hatched, marking a significant increase of 10 million YoY. This remarkable performance is anticipated to lead to a yearly production record, with KIPDIP expecting approximately 1.5 billion chickens to be slaughtered by the end of the year.
Over the past eight years, Poland has expanded its poultry production by nearly 50%, establishing itself as the largest European broiler meat producer and the fastest-growing in the European Union (EU). Despite this growth, Polish hatcheries face challenges in keeping up with demand as the industry has grown exponentially.

In 2023, Poland ranked as the world's seventh-largest broiler meat producer, exporting twice as much poultry meat as needed domestically. Looking ahead to 2024, factors such as rising feed and energy costs pose challenges to the industry's growth. While duck hatchlings showed a remarkable 71% production increase in 2022, it's important to note that the absolute production volume of ducklings in Poland is approximately 50 times lower than that of broiler chickens for slaughter. Poland ranks third in terms of poultry exports globally, behind the United States (US) and Brazil.

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