Rabobank’s latest report states that the outlook for the global poultry sector in 2014 is generally bullish because of significantly lower feed costs and tight supplies of beef and pork. In the Americas strong profitability should continue with feed costs providing production cost relief and the high prices of competing proteins of beef and pork supporting demand. However, the recent slow-down of demand from Asia may cause issues for the industry. For the EU, growth for 2014 is projected to be 0.6% which correlates with EU demand. The EU will also benefit from tight global supplies of beef and pork. The South African poultry industry will benefit from new safeguards from Brazilian imports however growing imports from the EU will result in a mixed outlook for 2014. The Russian poultry industry has had a hard year but will benefit from governmental price supports. China and India are experiencing supply gluts after demand fell as a result of food safety issues and slower economic growth. In 2014 China and India’s supplies should equalize however oversupply will remain an issue in Thailand. Both China and Mexico are rebuilding after the fallout from bird flu outbreaks this year however the announcement this week of the death of a 73 year old woman in China from a strain of bird flu not previously seen in humans could pose lingering issues for the Chinese poultry sector in 2014.
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