W1: Weekly Poultry & Egg Update
Chicken
Hungary: How Can the Consumption of Chicken Meat Be Maintained in the Future? (Jan 5)
Poultry farming costs continue to rise regardless of the current situation in Europe, capital costs continue to rise worldwide due to inflation. The data from the US Federal Reserve, indicate that higher borrowing costs are exacerbating rising construction costs. The incorporation of new technologies also increases the costs of both newly built barns and the renovation of existing facilities. In addition, sector experts expect that the costs of grain and other feed, as well as the amounts spent on animal health and welfare, will also increase in the next decade. Younger generations value sustainability more in the next decade, sustainability will play an even bigger role than it does today. The concept of sustainability does not only mean environmental aspects, but also focuses on animal welfare and social issues to a large extent.
Brazil: Chicken Prices Continue With a Downward Trend (Jan 3)
In São Paulo, according to Scot Consultoria, poultry on the farm remained stable at USD 0.95/kg (R$5.00), while poultry wholesale dropped by 2.26%, reaching USD 1.24/kg R$6.50). In the case of live animals, São Paulo had no price reference. In Paraná there was no price change, costing USD 0.98/kg (R$ 5.13), while in Santa Cataria, the decrease was 28.27%, falling to USD 0.57/kg (R$ 3.02). According to information from Cepea/Esalq, referring to January 2, both the frozen bird and the cooled chicken were stable, worth, respectively, USD 1.45/kg (R$ 7.61) and USD 1.46/kg (R$ 7.68).
Brazil: Overview of the Chicken Meat Market in Brazil and in the World (Jan 3)
Brazilian chicken meat exports are expected to grow by around 4% in 2023 according to the USDA (2022), due to growing demand in major markets such as China and the European Union. Another factor that is influencing the increase in Brazilian exports are the problems in the production of the main competitors, such as outbreaks of avian flu in North America and Europe, and the war in Ukraine that is impacting energy costs in the European Union and causing interruptions in Ukrainian production.
Brazil: Chicken Prospects in 2023 in Rabobank’s View (Jan 4)
Demand remains strong and supply limited, but the context is changing. An economic slowdown could affect market conditions and the persistence of high inflation will put pressure on consumer purchasing power. This usually translates into stronger demand for cheaper chicken, eggs and cuts and in markets where more expensive options such as organic chickens are already available, stronger demand for conventional chicken. While a growing number of countries are at risk of oversupply, markets globally are expected to remain firm in 2023 and demand for poultry will benefit from the drop in trade. However, in many countries, increased demand will be constrained by lower supply, leading to continued high prices. While chicken is the top-ranked protein in terms of affordability, the bigger question is what price consumers are willing to pay. This can lead to a profound reduction in demand, especially among low-income consumers. This is what is happening globally, but especially in emerging markets in Asia, Africa and Latin America.
Brazil: Export Performance of Chicken in 2022 (Jan 4)
The volume of chicken meat registered an annual increase within the margins foreseen by the export sector for some time: just over 4% increase, an index that corresponded to an annual total of 4.443M MT. Chicken was also the meat with the highest appreciation in the year with an increase of around 23% in the average price resulting in a 28% increase in foreign exchange earnings.
After remaining since the end of November with a value higher than that of São Paulo, in the last week of 2022 the price of live chicken traded in Minas Gerais suffered five consecutive reductions that resulted, in total, in a loss of USD 0.40 (40 cents), almost 7.5 % less in just one week. Thus, it ended 2022 (and started 2023) with reference to the exchange rate of USD 0.95/kg (R$5.00), the same value in force in the interior of São Paulo since last December 20. However, as is typical at the time (beginning of a new fiscal year), the price in effect remains a mere reference, as unscheduled offers continue to be subject to variable discounts. Accepting the base value, live chicken from Minas Gerais faces, in 30 days, a reduction of 7.41%, an index that in São Paulo exceeds 9%.
Brazil: 4% Higher Annual Chicken Volume Generates a 28% Increase in Foreign Exchange Revenue (Jan 4)
Preliminary results indicated that Brazilian exports of chicken meat in 2022, considering only the in natura product, were close to 4.434M MT, a volume that represented an increase of 4.34% over the 4.249M MT of 2021. More significantly, however, was the appreciation in the price of the product, which evolved from an average of USD1,636.53/MT in the year before last, to USD 2,008.33/MT in 2022, an increase of almost 23% in the year. As a result of the good performance of these two factors, the foreign exchange revenue from fresh chicken meat increased 28% in 2022, surpassing the USD8.9B mark. It should be noted that the results obtained in the year corresponded to new records for the sector in terms of volume, average price and foreign exchange earnings. The average price exceeded USD 2,000/MT for the first time, surpassing the previous record of USD 1,977/MT, which had remained unbeatable since 2011.
Brazil: Domestic Chicken Meat Availability in 2022 May Have Been Over 46 KG per Capita (Jan 5)
The per capita availability of chicken meat recorded in 2022 was greater than that estimated for most of the past year. Because, quite simply, the effective Brazilian population is lower than that which had been projected by the IBGE and this applies not only to 2022, but also to other previous years. In August 2022, in the estimates it periodically makes, the IBGE mentioned 215.002M inhabitants, compared to a total internal availability of chicken meat in the order of 9.7M MT, would correspond to a per capita availability of just over 45 kg. With the updated forecast, this volume rises to around 46.7 kg, close to 3.5% more.
Brazil: Chicken Meat Exports Keep Hitting Record, Even With Chinese Demand Falling (Jan 6)
According to the report released by Rabobank, even with the 18% drop in shipments to China (the largest destination for Brazilian exports, accounting for around 12% of the total), exports continue to rise and broke yet another record in 2022. In October 2022, exports increased by 5% in volume and 29% in value, higher feed costs being absorbed by the foreign market, which also increased the competitiveness of Brazilian broilers.
Brazil: The Brazilian Chicken Meat May Lose Space to Beef (Jan 6)
Brazil has been the world leader in chicken meat exports since 2004 and holds 35% of this market. In 2021 alone, the country produced 14.3M MT of chicken meat. Of this total, 32% were exported to more than 150 nations, generating revenues of USD 7.6B, according to data from the Federal Government. Regarding Brazilian exports, the Rabobank report released last week predicted that they will remain on the rise. However, in the domestic market, chicken meat must compete for space with beef. One of the reasons is the strong appreciation of beef combined with lower purchasing power, which resulted in a 13% increase in per capita consumption of chicken meat over the last three years,” says the report.
Brazil: National Poultry Sector Expects Growth in 2023 (Jan 6)
Despite the challenging global scenario, with the risk of a recession influenced by major world economic powers, and uncertainties related to the national situation, the prospects for the Brazilian poultry market are positive for 2023. Industry agents consulted by Cepea are optimistic, based on the possibilities that meat shipments remain high and domestic demand is heated. In Brazil, consumption of chicken meat may remain firm, in view of low economic growth and high inflation, which should keep the purchasing power of the population weakened.
Brazil: Brazilian Chicken Campaign in Qatar Reached 1.6M (Jan 6)
Among bids and celebrations at the biggest football event in the world, chicken meat was highlighted in a campaign carried out by the Brazilian Association of Animal Protein (ABPA), in partnership with the Brazilian Trade and Investment Promotion Agency (ApexBrasil), in the main avenues of Doha (Qatar). According to an analysis of the campaign's results, more than 1M Qataris and tourists were reached by the messages on the 30 panels spread across the busiest avenues in the capital of the country hosting the World Cup, according to the report generated by Cap Amazon, the agency hired for the action.
Czech Republic: 220,000 Chickens Infected With Bird Flu Were Slaughtered (Jan 4)
Veterinarians have begun slaughtering 220K chickens at a poultry farm in the village of Brod nad Tychou near the town of Tachov in the western Czech Republic, where a highly pathogenic H5N1 avian influenza virus has been detected. The poultry farm, which is one of the largest in the country, keeps about 742K chickens. They are located in three large production halls. Bird flu was detected in chicken in one of them. At the same time, veterinarians began slaughtering 12,K chicken and 1K turkeys at a poultry farm in the town of Sedlcany in Central Bohemia. There, veterinarians also identified bird flu.
Thailand: Weekly Summary of Agricultural Products (Jan 6)
Suggested prices for live broilers at the farm front from the Broiler Farmers Association indicate that the price stands at USD 1.19/kg (40 baht), for broiler chicks at USD 0.58 each (19.50 baht) and laying chicks at USD 0.84 each (28.00 baht).
Morocco: Why Has the Price of Chicken Dropped? (Jan 4)
Recently, the price of chicken meat has fallen significantly in Moroccan markets. On January 4, chicken meat was sold at USD 1.86/kg (19 DH), recording a drop of USD 0.29 (3 dirhams). Poultry farmers currently suffer losses ranging from USD 0.44 to USD 0.49/kg (4.50 to 5 DH). The decline in poultry prices was due to "consumers' reluctance to buy it, as well as their inability to secure previous successive price spikes that resulted in overproduction of poultry," said Said Janah.
Iran: Annual Chicken Meat Production Expected to Reach 2.65M MT by Mid-March (Jan 8)
As announced by an official with Iran’s Agriculture Ministry, it is expected that the country’s annual chicken meat production can reach 2.65M MT in the current Iranian calendar year (ends on March 20). Hossein Damavandi-Nejad, the deputy minister for livestock products, stated that the production capacity of chicken meat in the country is 3M MT and added that the full supply of the country's chicken meat market has been achieved so far. He also said that egg production is forecasted to reach 1.2M MT in 2023, of which 80K MT are exported.
Vietnam: Food to Meet the Needs of Tet Holiday (Jan 2)
According to the Department of Livestock Production, Ministry of Agriculture and Rural Development, Poultry flocks of about 531M heads completely meet the demand on Tet holiday this year. It is estimated that the country consumes about 160K MT of poultry meat per month on average, and about 195K MT in Tet alone, of which mainly chicken meat.
South Korea: Avian Influenza Occurred in Gimpo in 2 Years, Poultry Farm Tension (Jan 4)
Poultry farms are nervous because of the first case of highly pathogenic avian influenza (AI) infection in two years in Gimpo, Gyeonggi-do. According to Gimpo City on January 4, a highly pathogenic AI outbreak occurred at a laying hen (chicken that produces eggs) in Haseong-myeon the day before, and the quarantine authorities slaughtered about 80K chicken. It has been two years since 2021 that a case of highly pathogenic AI infection came out in Gimpo. The confirmed farm has no history of AI outbreaks, and from two months ago, disinfection of visitors and vehicles was strengthened according to the city's special AI quarantine measures, but infection could not be avoided. Quarantine authorities are said to be conducting epidemiological investigations assuming that winter migratory birds, which appear around the Han River estuary, are the source of infection. So far, there have been no additional cases of infection, but other farms are nervous about the spread of AI.
Egypt: Poultry Prices in the Egyptian Market (Jan 2)
The Poultry Division of the Chamber of Commerce announced an increase in the prices of poultry in farms, so that a kilo of white chicken reached USD 1.59 (44 pounds). The farm land was delivered January 2, while the price for the consumer in the markets ranged between USD 1.74 and USD 1.77 (48 and 49 pounds), and the price varied according to each region. The price of white chicks was USD 1.59 (44 pounds), sasso stood at USD 2.17 (60 pounds), sasso chicks ranged between USD 0.15 and USD 0.16 (4.25 and 4.50 pounds), white mothers sold at USD 1.49/kg (41 pounds), and white chicks oscillated between USD 0.16 and USD 0.17 (4.5 and 4.75 pounds). These prices reflected wholesale prices and not the final price for the consumer.
Egypt: State Provision of Feed Eliminates the Import Mafia (Jan 8)
On January 8, poultry prices witnessed a rise in the local market, as the price of a kilo of white chicken at the farm ranged between USD 1.52 and 1.55/kg (51 and 52 pounds), while the price for the consumer ranged around USD 1.67 (56 pounds), depending on the region. The high prices of poultry and its products are due to the mechanisms of supply and demand, pointing out that the decrease in supply led to an increase in prices due to the high prices of feed and production requirements.
Japan: Slaughtered 1.3M More Chicken With Military Help Amid New Bird Flu Outbreak (Jan 6)
Authorities in the Japanese prefecture of Niigata have confirmed a case of bird flu on a farm in the city of Murakami and have decided to slaughter 1.3M chickens that were raised at the poultry farm. This was stated in the message of the local administration published on January 6. The farm where the poultry were slaughtered is one of the largest in the region. It grows almost 20% of all chicken in Niigata. The authorities turned to the Self-Defense Forces for help.
Taiwan: The Number of Dead Chickens in Changhua Has Increased Suddenly (Jan 3)
The weather has turned cold since December 2022. Chicken farmer Ah Cheng wore a thick coat and came to the chicken farm to inspect the chicken farm in the early morning. Several chickens in the entire row of chicken coops were suffering from fever. Not only were the chicken combs dark red, but the chickens were also curled up. The body and lack of food made Ah Cheng very worried because on that month there were many more sick chickens and dead chickens than in previous years. The neighboring chicken farmers were also obviously increasingly worried.
Bolivia: There Are 6 Blockades and They Doubt That EMAPA Can Guarantee Chicken (Jan 5)
There are six blockade points in Santa Cruz and the Food Production Support Company (Emapa). It announced that it will buy chicken meat from small and medium-sized poultry farmers, but poultry producers fear that they will not be able to supply the entire country. The national government and President Luis Arce made a decision not to be dependent on the business sector. On the contrary, the small, medium and productive associations will be able to work in the food supply, declared the manager of Emapa, Franklin Flores, on January 4.
Turkey
Germany: Animal Welfare Rules for the Turkey Sector (Jan 2)
The German Federal Ministry of Food and Agriculture wants to amend the Livestock Farming Ordinance by including minimum requirements for keeping turkeys for meat. There are currently no regulations on this point in Germany or within the European Union. Within the turkey sector, health problems can occur that affect animal welfare. Examples are deformities of the skeleton, chest blisters and footpad disorders. In addition, feather pecking and cannibalism are a persistent problem. In order to keep the animals with a high stocking density, the beaks of turkeys are treated. Under the Animal Welfare Act, this intervention is prohibited and only allowed in exceptional cases.
Israel: Outbreaks of Bird Flu Were Detected on Two More Turkey Farms (Jan 6)
In Israel, outbreaks of pathogenic bird flu H5N1 were detected on two more turkey farms in the country. The first outbreak occurred among 25K turkeys in three cooperatives on a farm in the village of Magal near the barrier wall built by Israel in the occupied West Bank, the Ministry of Agriculture and Rural Development said in a statement. The second outbreak was detected among 25K turkeys for breeding at three cooperatives in the southern village of Beer Tuvia, the ministry was quoted as saying by the Xinhua news agency. With the last two turkey farms, bird flu outbreaks have been reported in nine poultry farms across Israel in recent weeks. The ministry urged breeders to keep birds indoors to reduce the risk of infection from wild birds, and quarantined all chicken coops within a 10km radius of the last two outbreaks.
Duck
France: A Lot of Bird Flu in Europe, France Wants to Vaccinate (Jan 6)
The vast majority of bird flu outbreaks in France occurred in the area where French meat ducks are kept. Hardest hit is the Vendee region with 115 outbreaks. Bird flu is also prevalent in the regions of Maine et Loire (41 outbreaks) and Deux-Sevres (34). These regions are located around and under Nantes and near the Loire River. In total, France had more than 1,550 outbreaks in 2022. Because the number of outbreaks rose sharply in November, the measures were tightened at the beginning of December. Ducks and turkeys in a zone of 10 to 20 km around outbreaks are culled preventively and no new ducks or turkeys may be set up in a zone of 50 km around the outbreaks. Due to the high number of outbreaks, the previous French minister of agriculture has already championed vaccination and the new minister is taking over.
South Korea: Duck Supply and Demand Imbalance Deepened With Avian Influenza (Jan 5)
Due to the highly pathogenic avian influenza (AI) and restrictions on breeding duck farms in winter, the number of ducks raised is continuously decreasing and the price of ducks has risen, exacerbating the imbalance between supply and demand. A total of 38 cases of ducks have occurred in relation to highly pathogenic AI, which has recently been spreading across the country, and about 700K ducks have been slaughtered. As a result, the number of farms raising ducks is declining.
Egg
Thailand: Weekly Summary of Agricultural Products (Jan 6)
Cooperative network of laying hens recommended price for assorted chicken eggs at the farmer's farm front at USD 0.11/egg (3.60 baht), an increase from USD 0.10/egg (3.40 baht), effective January 6, 2023.
Australia: Brings Forward Its Ban on Caged Eggs After Phasing Out Battery Cages for Hens (Jan 4)
Animal welfare activists have called on Australia to bring forward its ban on cage eggs after battery cages for layer hens became illegal in New Zealand on 1 January. The Australian government last year committed to phasing out battery cages for hens by 2036, a 14-year lead time for a reform that followed seven years of negotiation with the egg industry to update the animal welfare standards and guidelines for poultry. New Zealand announced its 2023 phase-out in 2012.
Indonesia: The Culprit of Year-End Inflation Subscriptions Since 2019 (Jan 2)
The Central Statistics Agency (BPS) has shared commodity data that triggers inflation at the end of every year, in December, since 2019. From BPS data, surprisingly, the commodity contributing to inflation at the end of each year is eggs. The increase in purebred chicken eggs has always appeared since December 2019. BPS Head Margo Yuwono revealed that purebred chicken eggs contributed to inflation in December 2019 with a share of 0.08%. Then, purebred chicken eggs again contributed to the inflation of 0.06% in December 2020. This commodity was recorded as triggering inflation in 2021 with a share of 0.05%. "(In December 2022) Purebred chicken eggs contributed 0.06% and if we look at the spatial distribution, it occurred in 89 cities, the highest being in Batam, inflation was 13.31% and the city of Dumai was 13.18%," said Margo.
Singapore TA: Chicken Egg Prices Climbed to Their Highest Level in Over Ten Years in Late 2022 (Jan 5)
Egg prices in Singapore rose 3.8% MoM and 26% YoY, in November, to their highest level since at least 2010. One of the reasons behind the sharp MoM increase in prices is the ongoing shortage of eggs in Malaysia, from which imports are a considerable part of Singapore’s egg supply. In fact, in December, the Malaysian Ministry of Agriculture and Food Security issued a statement mentioning it had opened the window for temporary imports of chicken eggs. The shortage has reportedly been caused by a decline in supply due to higher input costs. (Continue Reading)
