30 January 2015 | Online since 2003



15 July 2014|Finance,News,Poultry

Global poultry prices are taking off in Q2


Global poultry prices are taking off in Q2, according to Rabobank’s Poultry Quarterly Q2: Prices Taking Off report. This bullishness is driven by relative price support from high beef and pork prices alongside demand recovery and a more balanced supply and demand situation in most regions of the world. This is expected to lead to an improvement in profitability for the global poultry industry.

“Under improved global market conditions, led by the North American region, a slight increase in global chicken prices is expected,” commented Rabobank Analyst Nan-Dirk Mulder. “We see an increasingly balanced market, where supply discipline is more the order of the day and improving margins will be the likely result. However, markets remain volatile and any change in fundamentals, especially from the supply and feed side, will impact global prices. Suppliers should look to keep production growth disciplined”.

Global feed prices are expected to decline in Q3 and Q4 based on current fundamentals and a good crop outlook for wheat and soybeans. Despite this positive outlook, the possible return of volatility in feed prices remains a threat to the poultry industries in all regions as stock levels remain low. Global grains and oilseeds prices have recently increased and old crop grain markets are currently tighter than expected. In addition, ongoing concerns about the situation in Ukraine and the potential threat of an El Niño event are creating some market volatility. Animal disease outbreaks also remain a concern.

Regional updates

United States: 2014 is on pace to be even better than 2013 – one of the most profitable years in the last decade. The industry is primed to benefit from lower beef and pork production, a limited breeder flock, increasing exports due to the risk of another avian influenza (AI) outbreak in Mexico, and favourable feed costs.

European Union: Margins in the EU poultry industry are currently quite strong. Markets are reasonably well balanced, with a reduction in production in Q1 compared to the same period in 2014 and relatively strong demand.

China: AI outbreaks decreased, coinciding with warmer weather in Q2 2014. The negative impact on consumption is fading and the market is now showing signs of recovery, with increasing poultry prices in both retail and live bird prices.

Brazil: Poultry meat prices are expected to hold firm in Q2 as a consequence of the high prices of competing proteins as well as the increases in both domestic and international demand.

Other EMEA: The Russian poultry industry is still suffering from oversupply in the domestic market. Market conditions in the South African poultry industry have normalised after a long period of oversupply with rising imports.

Other South America: Production in Mexico has been unable to recover from its 2013 contraction and could experience further setbacks as a result of the return of AI. Domestic issues saw production in Argentina fall 4% YOY in Q1 2014.

Other Asia: The Japanese and Thai poultry industries remains bullish although the gradual restart of a major Thai broiler producer might impact future outlook. In contrast, India’s poultry industry experienced one of the worst first quarters in the last five years.

Download Rabobank Poultry Quarterly Q2 2014 - Prices taking off



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


21 January 2015
Animal Care Assistant
The College was placed fourth in Agriculture, Veterinary and Food Science, but was the first-placed veterinary school (by 4*)...

12 January 2015
Systems Manager
SASA (Science and Advice for Scottish Agriculture) provide scientific services and advice in support of Scotland?s agricultur...

23 January 2015
Financial Accountant
Own, manage and reconcile the Dairy, Transport, Holdings, Property and Foodservice balance sheets, ensuring all entries are s...

21 January 2015
Field Service Engineer (Electrical & Mechanical)
They are part of a large group and service the whole of the UK in a various sectors, including but not limited to, Industrial...

19 January 2015
Sales Executive
Your primary role will be selling spaces at International conferences on behalf of a leading global provider of energy, petro...




Top stories you may have missed
12 November 2014 | Arable
GM crops 'good for farmers and the envir...

GM crops 'good for farmers and the envir...

GM crops are good for the economy and can reduce the amount of pesticides u...


6 November 2014 | Cattle
Smaller European markets drive beef expo...

Smaller European markets drive beef expo...

Demand from smaller European markets has helped drive strong growth for UK ...


6 November 2014 | Agri Safety
Lack of engineers a 'ticking time bomb' ...

Lack of engineers a 'ticking time bomb' ...

A lack of engineers, not enough people promoting the land-based industries ...


4 November 2014 | Bees and Beekeeping
Bee action plan due: Last chance for bee...

Bee action plan due: Last chance for bee...

Environment Secretary Elizabeth Truss is launching the National Pollinator ...


4 November 2014 | Arable
Experts welcome financial boost for youn...

Experts welcome financial boost for youn...

Agricultural specialists have welcomed a potential financial boost for youn...


3 November 2014 | News
Supermarket competition on prices 'risks...

Supermarket competition on prices 'risks...

As retailers continue to participate in a highly competitive race to the bo...


31 October 2014 | Arable
New Defra farm figures 'underline volati...

New Defra farm figures 'underline volati...

New farm business income data from Defra, which focus on income from March ...


30 October 2014 | Agri Safety
Agriculture remains one of UK's most dan...

Agriculture remains one of UK's most dan...

Agriculture has remained one of the industries in which workers are most li...


29 October 2014 | Finance
UK farmland prices see 'substantial grow...

UK farmland prices see 'substantial grow...

Prime arable land in the UK has seen a substantial year-on-year growth in p...


27 October 2014 | Arable
Satellites to help farmers pinpoint dise...

Satellites to help farmers pinpoint dise...

A new mobile app for farmers able to pinpoint and identify disease, pests a...