Improved global Market conditions, balanced supply and demand scenarios, high beef and pork prices, and falling feed prices are driving profits for the global poultry industry according to Rabobank’s latest report, ‘Poultry Quarterly Q2 Prices Taking Off’. Margins for the poultry industry are improving on an increasingly balanced market however suppliers should strive to keep growth controlled as volatility remains amid concerns surrounding the situation in Ukraine and the impending El Nino. The U.S. poultry industry saw one of its most profitable years in a decade in 2013, and 2014 is expected to exceed it on limited breeder flock size, low beef and pork production, low feed costs, and increased exports based on the possibility of another avian flu outbreak in Mexico which is still struggling to recover from the outbreak in 2013. Margins and demand are currently both strong in the EU, and China’s poultry market is showing signs of recovery from the recent avian flu outbreaks with rising prices for both live birds and retail. Russia is dealing with oversupply as South Africa is pulling out of its oversupply situation. Brazil’s poultry sector is in good position due to high prices of competing proteins and strong domestic and foreign demand.
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