W2: Weekly Poultry & Egg Update
Chicken
Global: In 2023, There Will Be More Production of Chicken (Jan 11)
By the end of 2023, chicken meat will have a production of 102.7M MT. In this case, YoY growth would be 1.7%, with the United States as the most important player in the industry. The North American nation would conclude 2023 with 21.1M MT, processed, 1.5% more compared to 2022. Brazil would follow, although with a more considerable increase, of 3.1%, to reach 14.8M MT.
US: The National Chicken Council of United States Updated Its Guidance for the Welfare of Broilers (Jan 12)
The National Chicken Council of the United States (NCC) updated its Broiler Welfare Guidelines, a document that has been developed since 1999 and widely adopted by breeders and chicken processors to ensure that all chickens receive proper care and humane treatment. Revised annually, the guidelines cover every phase of a chicken's life and offer the most up-to-date recommendations for the proper treatment and humane care of broilers, chickens raised for meat. The guidelines include: Identification of key welfare indicators (KWIs), including paw and footpad health, gait score, effective processing parameters, and minimization of paw and foot injuries at. Protection of whistleblowers. Additional focus on training programs for proper management.
Malaysia: Government to Review Chicken Ceiling Price (Jan 13)
The ceiling price of USD 2.17/kg (RM9.40) for standard chicken in the market will be reviewed to ensure that the people get the protein source at a more stable price. Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub said that due to the recovery of chicken supply in the market, he will hold discussions with industry players to determine the new ceiling price soon. Asked whether the new ceiling price will be cheaper than the current ceiling price or vice versa, Salahuddin said the matter will be determined later, and hopes that negotiations can be done with industry players.
Brazil: Avian Flu in the World Should Boost Demand for Chicken in 2023 (Jan 10)
After records of volume and revenue from chicken exports in 2022, Brazil should continue to see heated external demand for the meat in 2023 due to the advances of avian flu around the world, which tend to reduce the supply of the product in the global market, said the Brazilian Association of Animal Protein (ABPA). Brazil has never registered cases of the disease, said the ABPA, which contributed to a gain in competitiveness against competitors with health problems. He still believes that the increase in production costs in Europe with items such as energy and grains, due to the war between Ukraine and Russia, should also contribute for European countries to seek meat outside the continent.
Brazil: Export of Chicken Meat From Brazil Rose 4.6% In 2022 and Also Had a Record in Revenue (Jan 10)
Brazilian exports of chicken meat totaled 4.822M MT in 2022, considering fresh and processed products, a historic record that surpasses the total exported in 2021 by 4.6%, according to data from the association. Revenue from exports reached USD 9.762B, another historic result, up 27.4% compared to 2021, with additional help from higher prices, reported the ABPA. Chicken meat exports reached 386.3K MT in December, a volume 6% lower than that registered in the last month of 2021. However, there was an increase of 9.2% in revenue from chicken meat exports in December, reaching USD 785.2M. Among Brazil's main export destinations in 2022, China remained the main one, with 540.5K imported tons, but a volume 15.6% lower than that registered in 2021. In second place, the United Arab Emirates imported 444.9K MT last year, surpassing the total shipped in the previous year by 14.2%.
Brazil: Brazilian Poultry Export Record in 2022 (Jan 10)
Brazilian broiler exports might have reached a new record of 4.85M MT in 2022, according to ABPA (Brazilian Association for Animal Protein). This would be 5% more than in 2021 when the country exported 4.6M MT. The entity presented these numbers in December, forecasting 14.6M MT of production in 2022, 1.5% more than the previous year. According to a report by Rabobank, even with the 18% drop in Brazilian shipments to China (the largest destination for Brazilian exports, accounting for around 12% of the total), chicken meat exports continue to rise. In October 2022, for example, protein exports increased by 5% in volume and 29% in value. Higher feed costs are being absorbed by the foreign market, which has also increased the competitiveness of Brazilian broilers on the international scene.
Brazil: Brazilian Chicken Gets the Best Prices and the Highest Valuation in the International Market (Jan 11)
FAO data indicated that beef and chicken meat exported by Brazil were the ones with the highest appreciation in the international market in 2022 from 2021. The highest valuation, among the three products and among the main exporters, was obtained by Brazilian chicken meat with a 21.96% increase, against 16.24% in the USA. Brazilian beef and chicken obtained better prices than their competitors.
The first report for 2023 by the US Department of Agriculture (USDA) on the prospects for world chicken meat exports in the current fiscal year suggests that the global volume traded internationally should suffer a reduction of close to 1% in relation to the which had been predicted in October. But, in the case of Brazilian exports, the USDA predicts a more serious reduction, as it indicates a 5% retraction in relation to that indicated about three months ago. This, however, does not imply a reduction in volume compared to what was exported by Brazil in 2022. According to the new USDA forecast, Brazilian exports should increase by just over 2.5% and reach 4.560M MT, a volume that, always it is worth noting that this refers only to the in natura product and does not include chicken feet/paws.
Brazil: Chicken Crisis Increases in Early 2023 (Jan 13)
The outlook for chicken farming is worrying since prices do not find room for support. The downward movement intensified in the period, quite affecting the prices of slaughtered and live chicken. The crass-error was the expansion of the housing of breeder chicks in the last four months, at a time of retraction in the volume exported. In addition, the deterioration of the average prices paid per ton of chicken in the international market was also evident. According to data from APINCO, housing in October hit approximately 593.96M head, up 0.73% from the same period in 2022. In November, the indication was for the housing of 603.28M head, rising nearly 6.3% compared to the same period last year. These numbers give a clear idea of the expansion of production, justifying the oversupply in the market and the consequent loss of margin.
Poland: The Availability of Chicken Products Is Expected to Decrease Due to Rising Production Costs (Jan 13)
According to chicken meat producers, rising electricity and heating costs are causing some hatcheries in Poland to operate at a limited capacity. Therefore, there is an expected shortage of chicken meat on the horizon.
Russia: Russian Poultry Industry Sets Ambitious Targets for 2023 (Jan 13)
Russia hopes to see a further rise in broiler meat and eggs production in 2023 as well as a growing independence of the supply chain from imported components, Vladimir Fisinin, president of the Russian poultry union said. In 2022, Russia manufactured 5.2M MT of broiler meat in slaughter weight, 5.2% up compared with the previous year. Egg production climbed by 2.8%, 1B units to 45.8B units last year, Fisinin disclosed. Russia was ranked the world’s 4th largest poultry meat producer and 7th biggest egg producer in 2022, Fisinin said. The key issues for the Russian poultry industry are effectiveness and product safety.
Egypt: Chicks Prices (Jan 11)
On January 11, the prices of chicks in Egypt witnessed a significant decline in the selling price in poultry companies operating in the local market, as the selling prices decreased by USD 0.10 to USD 0.19 (3 pounds to 5.5 pounds) at once in the selling price in most poultry companies. Chicks prices in Egypt Cairo Poultry was USD 0.42 (12.5 pounds) instead of USD 0.52 (15.5 pounds). At New Hope Egypt Poultry they went at USD 0.57 (17 pounds), Al-Watania for USD 0.44 (13 pounds) instead of USD 0.57 (17 pounds), Al-Fayrouz for USD 0.44 (13 pounds) instead of USD 0.57 (17 pounds), Al-Anani for USD 0.47 (14 pounds) instead of USD 0.56 (16.5 pounds), Amat for USD 0.46 (13.5 pounds) instead of USD 0.52 (15.5 pounds), Valley for USD 0.52 (15.5 pounds), and in Nile Pioneers for USD 0.44 (13 pounds) instead of USD 0.59 (17.5 pounds). In Egyptian Dutch, there was no production and the price was USD 0.54 (16 pounds). According to the statistics of the Poultry Division of the Chamber of Commerce, the volume of chick production in the local market was 1.4B chicks annually, while the market includes approximately 2B chickens annually. As for table eggs, the volume of production was 13B eggs annually.
Egypt: Poultry Prices in the Egyptian Market (Jan 12)
On January 12, 2023, poultry prices witnessed stability in the local market, due to the recent release of quantities of feed ingredients during the last period. The price of a kilo of white chicken at the farm ranged between USD 1.65 and USD 1.69/kg (49 and 50 pounds), while the price for the consumer ranged around USD 1.86 (55 pounds), depending on the region. The price of sasso chickens ranged from USD 1.96 (58 pounds) at the farm, and the price per kilo for the consumer reached USD 2.09 (62 pounds). The price of domestic chicken at the farm was USD 2.06/kg (61 pounds), and the consumer price ranged from USD 2.16/kg (64 pounds), depending on the region.
Indonesia: Chicken Farmers Held a Chicken Breeder Action (Jan 10)
As many as 200 chicken farmers held a Chicken Breeder Action on January 10 2023 starting at 9.00 WIB. The action carried 10 demands, the first of which was to demand the replacement of the Minister of Agriculture and the Director General of PKH (Livestock and Animal Health). The action was held in various locations, namely: - National Palace - Ministry of Trade - National Food Agency - PT Farmsco Food Indonesia. Chairman of the National Poultry Farmers Community, Alvino Antonio, said that the action also demanded an increase in the price of chickens in cages according to the reference price of the National Food Agency (Bapanas) No 5/2022.
Japan: Bird Flu Kills Record Number of Chickens This Season (Jan 9)
Japanese authorities have culled at least 9.98M chickens during the current bird flu season (which covers the period from autumn to spring), which was an anti-record figure. This is evidenced by statistics published on the website of the Ministry of Agriculture, Forestry and Fisheries. The previous anti-record was recorded in the period from November 2020 to March 2021, when 9.87M chickens were slaughtered in the country due to the spread of infection.
Mexico: High Price of Chicken Meat Caused an Increase in Pork Consumption (Jan 12)
The increase in the price of chicken since 2020 has stimulated pork consumption among Mexicans, increasing 7.2% in 2022, as a substitute for what is considered "affordable meat" by the population, according to the Mexican Meat Council. At the end of 2022, the highest consumption of pork was obtained in Mexico with 2.90M MT, 16% higher than the pre-pandemic period of 2019. Ernesto Hermosillo, president of ComeCarne, specified that meat consumption, considering chicken meat, pork, beef and processed food, increased by 3.3% compared to 2021, for a total of 10K MT. Despite the increase in the price of chicken last year, this type of meat also increased the consumption of the population by 3.1%, compared to 2021. Chicken is the meat most sought after by Mexicans, with an amount of 4.69M MT. This indicated that 69% of meat consumption was made of sausage and pork, as their cost is lower in relation to the price of beef.
Duck
Hungary: Bird Flu Has Appeared in Another Area of Békés County (Jan 15)
The laboratory of the National Food Chain Safety Office (Nébih) confirmed the presence of the highly pathogenic avian influenza virus in a farm in Békés county that keeps about 2K mallard ducks. Protection and surveillance areas have been designated. The agency also confirmed the disease in birds kept in captivity at an animal shelter in Budapest. The disease appeared in Battonya, an area of Békés County that has so far been free of bird flu.
Egg
Global: Egg Prices Surge Around the World in the Aftermath of Avian Influenza (Jan 13)
Egg prices around the world fluctuate in the aftermath of avian influenza. According to the New York Times (NYT) on the 12th (local time), about 57M poultry have been affected since the outbreak of avian influenza was detected in February last year. The US Department of Agriculture killed more than 44M laying hens last year alone to help contain the spread of the virus. This number accounted for 4 to 5% of laying hens across the United States. Accordingly, the average price of 12 large grade A eggs in the United States in January last year rose from USD 1.39 (about 1.72K won) to USD 4.25 (about 5.26K won) earlier in January. In California, the price of 12 large A-class eggs also recorded USD 7.37 (approximately 9.11K won). In Japan, about 10.08M birds, including chickens, were slaughtered until the last 10 days after avian influenza was discovered in Hokkaido in October of last year. There are 130M laying hens across Japan, of which 8% have been culled.
US: Bird Flu, the Cause of High Egg Prices (Jan 12)
Egg prices at the grocery store were elevated throughout 2022 due to outbreaks of highly pathogenic avian influenza (HPAI) among egg-laying hens, said USDA economists. Wholesale egg prices were expected to decline as the industry rebuilds its hen inventory, said the Economic Research Service. Prices, which were 210% higher in the week leading up to Christmas than during the same period in 2021, fell in the final week of 2022. Bird flu outbreaks began last February, with two large waves of losses, the first from February to June and the second from September to December.
New Zealand: Egg Shortage Will Continue for Months While Farmers Raise Another 300K Laying Hens (Jan 9)
It may take a few months for the egg shortage to get back to normal, says an industry leader. Egg Producers Federation director Michael Brooks said the country had about 3.5M egg laying hens, but needed about 3.8M to assure a constant supply of eggs. To get laying hen numbers up would take months, because a chick that hatched today would not lay eggs for another four or five months, he said. An egg shortage had been making headlines over the past few weeks and Brooks earlier warned inflation and the cost of new hen housing could cause egg prices to increase this year. Under the new layer of the hen code of welfare, hen cages were phased out at the end of last year and hence the numbers were down as farmers moved to new production systems.
South Korea: Authorities to Release 15M Eggs in Reserve for Lunar New Year (Jan 10)
The Ministry of Agriculture, Food and Rural Affairs announced on the 10th that it will supply 1.21M fresh eggs imported from Spain on a trial basis from the 15th at the earliest. Currently, egg supply and demand are stable, but it is judged that the supply and demand situation may worsen if the influx of migratory birds continues until January and the spread of highly pathogenic avian influenza (AI) in laying hens farms. According to the livestock distribution information of the Livestock Products Quality Evaluation Institute, the price of eggs (30 eggs) as of the 9th was USD 5.34 (6.63K won), a slight increase from a year ago by USD 5.19 (6,44K won).
South Korea: Poultry Association Protests Against Imported Eggs (Jan 11)
When the government enforced egg imports despite farmers' objections, egg farms took action to block imports. On the 10th and 11th, the Korea Poultry Association held a demonstration to block imports in front of an egg sorting and packaging company located in Cheonan, where imported eggs are coming in, to prevent egg imports. During the protest on the 11th, Jeong Ki-hoon, auditor of the Poultry Association, was arrested by the police. The conflict between the government and farmers is expected to deepen as the Poultry Association announced that it would continue to protest until egg imports are stopped.
