W3: Weekly Poultry & Egg Update

Chicken

Global: Chicken Meat Production Will Fall In 2023 According to the USDA (Jan 16)

Global chicken meat production will be around 102.9M MT and upward revisions for the UK, Thailand and Mexico will offset a decline for Brazil, according to the USDA. UK production continues to expand on strong demand despite labor issues, higher production costs and recent avian flu outbreaks. Brazil is revised down on weaker external demand, particularly from China. China's chicken meat imports are revised down to pre-pandemic levels.

Global: Situation and Trend of Chicken Meat (Jan 16)

From 2018 to 2022, the world's chicken meat production tends to increase at a rate of 2.05%/year. In 2022, the world's chicken meat production amounted to 100.93M MT, an increase from 100.51M MT in 2021 by 0.42%. In the same period, world chicken consumption trends were increasing at a rate of 2.09%/year. In 2022, the world's chicken meat consumption amounted to 98.25M MT, a slight increase from 98.08M MT in 2021, 0.17%, where the United States was a country with the highest consumption. The world's chicken meat exports grew at a rate of 1.92%/year from 2018 to 2022. In 2022, the world's chicken meat exports amounted to 13.63M MT, an increase of 2.57% from 13.29M MT in 2021. In 2022, the world's chicken meat imports amounted to 11.01M MT, an increase of 1.65% from 10.83M MT in 2021. 

Netherlands: 60K Chickens Were Slaughtered Due to Bird Flu (Jan 17)

Bird flu was detected in the east of the Netherlands, hence 60K chickens were slaughtered to prevent the spread of the virus. This was announced on Jan 17 by the Dutch Food and Consumer Product Safety Authority. This was the first confirmed case of bird flu in 2023, according to authorities. It was identified in the village of Loo in the east of the country. There were 12 more poultry farms within a radius of 10 km. For them, a ban was introduced on the transportation of birds and eggs.

Brazil: At the Forefront of Cultured Meat Development (Jan 17)

Embrapa's unprecedented project aims to produce an alternative protein, analogous to chicken breast. This technology creates animal tissues from animal cells and has been gaining strength in Brazil and in the world due to the current consumption profile of healthy foods. The final product, which should probably be completed in 2023, resembles a sassami, boneless chicken breast fillet. Embrapa Suínos e Aves (SC) is leading a pioneering study in Brazil to develop chicken meat grown under controlled laboratory conditions.

Brazil: Competitiveness of Pork Falls Compared to Chicken (Jan 19)

Chilled whole chicken demand, which has been slowing down since December 2022, continues to retreat in January 2023. In addition, agents report an increase in supply in the domestic market, which intensified the downward trend. Thus, in this part of January, the special pork carcass is USD 0.80/kg (4.17 Reais) above the value of the whole chicken, an increase of 3% compared to the difference registered in December. The increase in the price difference between the products favors the competitiveness of the chicken, which is more “affordable” for consumers.

Brazil: Average Price of Live Chicken in Paraná Closed Below the Average of Production Cost (Jan 19)

According to information released by the Department of Rural Economy (Deral), of the State Department of Agriculture of Paraná, the average producer price of live chicken was below the average cost of production in poultry. The average nominal price of live chicken paid to the producer in 2022 closed at USD 1.03/kg (BRL 5.36), while in last year's average, the cost of producing live chicken was around USD 1.07/kg (BRL 5.55).

South Africa: Retail Chains Are Threatened With a Shortage of Chicken (Jan 19)

South Africa is on the cusp of a severe chicken meat shortage in the food market due to prolonged rolling blackouts across the country. The association's leadership warned that the current situation risks leading to a serious shortage of chickens and chicken products in South African stores. South Africa has experienced rolling blackouts since March. Consumers are deprived of it up to 12 hours a day. The situation in the electric power industry of South Africa has been deteriorating in recent years. The reason for this situation is the aging equipment of coal-fired thermal power plants and the low maintenance culture of existing facilities.

China: Why Will They Import More Red Meat and Pork in 2023? (Jan 18)

China's chicken meat imports are projected down due to pre-pandemic levels. Lower pork prices are expected to reduce consumer demand for chicken meat and not be greatly affected, considering that chicken meat imports represent only about 4% of consumption in that country.

Guatemala: Declared Free of Highly Pathogenic Avian Flu (Jan 20)

The epidemiological surveillance system of the National Poultry Health Program (PROSA) of the Ministry of Agriculture, Livestock and Food (MAGA) informs that Guatemalan territory is free of positive cases of Highly Pathogenic Avian Influenza (H5N1) and to keep it that way, announced the strengthening of epidemiological surveillance, especially in Izabal. The director of Prosa, Julio Cordón, explained that since 2022 until now, strict surveillance has been carried out on both resident and migratory birds. To this end, inspections and tests are carried out in communities with coastal marine wetlands on both coasts. These samples, after being analyzed in the laboratory, confirm that Guatemala is free of the H5N1 virus. Cordón highlighted that the absence of cases of Highly Pathogenic Avian Influenza H5N1 guarantees the entire population that there is no risk when consuming eggs and chicken from Guatemalan poultry.

Zimbabwe: NGOs Call for Abolition of Caged Chicken Farming (Jan 20)

Newsday Zimbabwe NON-Governmental organizations want breeding of chickens in battery cages abolished saying it is cruel and leading to the spread of zoonotic diseases. The call was made by the Africa Network for Animal Welfare, Nurture Imvelo Trust and the Open Wing Alliance. Battery cages are a housing system used primarily for egg-laying hens.

South Korea: Increased Breeding of Korean Laying Hens in the Fourth Quarter of 2022 (Jan 20)

In the fourth quarter of 2022, the number of Korean beef cattle and laying hens increased from a year ago, while dairy cows, pigs, broilers, and ducks decreased. The number of laying hens was 74.19M. Due to the increase in the number of chicks from March to September last year, there was an increase of 1.58M (2.2%) from a year ago. Broiler chickens decreased by 4.89M (5.2%) due to the increase in the cost of chicks, and ducks by 758K (11.2%) due to avian influenza. There were 88.713M broilers and 5.994M ducks.

Egypt: Chicks Prices (Jan 21)

The prices of chicks increased on Jan 21 in Egypt, in a large number of poultry companies operating in the poultry wealth sector. The prices of chicks in companies have jumped between USD 0.017 (50 piasters) and USD 0.05 (1.5 pounds) at once per chick. The prices of chicks increased in Cairo Poultry by about USD 0.042 (1.25 pounds), New Hope Egypt USD 0.017 (50 piasters), Al-Watania USD 0.05 (1.5 pounds), Al-Anani USD 0.05 (1.5 pounds), Amat USD 0.05 (1.5 pounds), and Egyptian Dutch USD 0.05 (1.5 pounds). With the stability of chick prices in all pioneers of the Nile and the Valley.

Mexico: Veracruz, the Livestock Giants (Jan 16)

Patricia Ornelas Ruiz, head of the Agri-Food and Fisheries Information Service ( SIAP), specified that chicken meat was the protein with the highest participation, with a total of 3.4M MT and a growth of 3.2% compared to 2021. Veracruz was the state with the highest production in this period, contributing close to 450K MT.

Turkey

Russia: AI Outbreaks in France Have a Big Impact on the Russian Turkey Meat Market (Jan 19)

Russian turkey farmers warn of a slump in output in the first half of 2023 due to a shortage of hatching eggs, Anatoly Velmatov, executive director of the Russian national turkey producers’ association, said. Currently, the Russian turkey industry lacks between 500 and 700M hatching eggs. The problem is primarily associated with a series of avian influenza outbreaks in France, which disrupted export supplies, including those to Russian customers. He estimated that the existing and planned hatching egg production in Russia would be sufficient to cover only 80% of the domestic demand. Currently, Russian poultry farmers are building several new hatcheries, including one near Tyumen, with 12M hatching eggs per year, and Voronezh, with a capacity of 6M hatching eggs per year. New operations are expected to begin in the country in 2023 and 2024. In 2022, Russian turkey meat production could add 5-7% to the previous year’s level, reaching 420K MT. Last year Russia was likely ranked second on the list of the world’s largest turkey meat manufacturers, according to the Russian national turkey producers’ association.

Egg

US: Chicken Egg Prices up 267% In a Year (Jan 19)

For consumers in the EU, chicken eggs have gone gold. And the reason is not only bird flu. According to the USDA, at the moment the cost of a dozen eggs ranges from USD 3.75 to USD 7.50 depending on the type of egg. In total, in the US, eggs have risen in price by 267% compared to last year. The main cause is bird flu. The USDA has said that bird flu killed more than 43M laying hens in 2022. In Europe, the situation with the production of chicken eggs is becoming more complicated due to both the bird flu and the cost of feed and poultry management. “Stratospheric egg prices around the world raise the question of when the painful price rally will end and what are the expectations for the commodity in 2023 after a brutal 2022,” writes Mark Cervera.

US: Reports an Increase in the Volume of Mexican Eggs Seized at the Border (Jan 20)

The United States Customs and Border Protection (CBP) Office warned on Jan 20 that there has been "a large increase" in the volume of prohibited foods seized on the border with Mexico, such as eggs and raw poultry meat. The price of eggs in the United States has experienced an increase in recent months. According to the US Department of Agriculture's (USDA) Economic Research Service, the price increases in eggs and chicken are due to an ongoing outbreak of avian influenza (bird flu). Although USDA believes that the current outbreak was initially spread by wild birds, previous outbreaks of this and other avian diseases, such as Newcastle disease, have been linked to human movement of birds and avian products, the CBP statement noted.

US: Bird Flu Epidemic and Inflation Skyrocket Egg Prices (Jan 22)

According to the US Department of Agriculture's food price outlook report, millions of chickens were affected by the avian flu epidemic that started in February 2022. While nearly 60M birds were culled in 47 states, the number of laying hens affected by the epidemic exceeded 43M. US egg stocks were down 29% last month from early 2022, as egg supply fell sharply due to recurrent outbreaks.

Netherlands: Free-Range Egg Disappears From the Supermarket Due to Bird Flu (Jan 17)

Because chickens have had to stay indoors since early October due to bird flu, supermarkets are no longer allowed to sell free-range eggs from January 25. The boxes are then filled with free-range eggs. The poultry sector fears that this adjustment will kill the free-range egg. If free-range chickens have not been outside for sixteen weeks, their eggs may no longer be sold as free-range eggs. That is why ALDI no longer sells free-range eggs in some locations. Supermarket chains Albert Heijn, Jumbo and PLUS will label the boxes by 25 January at the latest to make it clear that they contain free-range eggs from that moment on. Products that normally contain free-range eggs will also contain free-range eggs from the end of January.

Malaysia: Imported Eggs Help Alleviate Local Shortage (Jan 18)

The shortage of eggs in Malaysia was reduced to 1M in December last year, Agriculture and Food Security Minister Mohamad Sabu said on Jan 17, following the import of the product from foreign countries. This is compared to the shortage of 157M eggs in November and 118M eggs the month before.

Iraq: Government Will Sell Eggs, Flour and Chicken to the Public at Low Prices (Jan 22)

The Iraqi government decided to sell cheap eggs, chicken and flour to the public against the price increases in the market due to the depreciation of the local currency against the US dollar. Speaking to Iraqi news agency INA, Mohammad Hannun, Spokesman of the Ministry of Commerce, said that eggs, flour and chicken, which are considered basic foodstuffs, will be offered for sale at the sales centers established below the market price.