A new report from Rabobank’s Food & Agribusiness Research and Advisory Group states that avian flu and trade restrictions will have a large influence on the global poultry sector in 2015. Regions affected by avian flu outbreaks such as Canada, the EU, Asia, India, Egypt, and Mexico will likely lose export market share while those regions not affected, such as the U.S. and Brazil will remain strong, likely capturing the lost market share of affected countries, and experiencing strong demand, low feed costs, and high prices among competing proteins. The spread of avian flu remains a major concern, and countries are warned to prepare for ongoing disease pressure requiring intense biosecurity and modification of business practices. Because of trade restrictions, Russia is forecast to experience record high prices, and outbreaks of avian flu in northwest Europe have greatly affected Russia’s imports of day old chick and hatching eggs. Global trade flows will shift in favor of Brazil, which due to its isolated location and distance from Asian migration routes makes it generally safe from avian flu, as that country gains the U.S. and EU market shares in Russia. Despite global markets being deeply affected by avian flu, in general, the sector will see strong markets, low feed costs, and stable global poultry prices.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service