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Latest headlines

Report: Avian flu challenges global trade

By Jeremy Gerrard
Poultry farmer wins water pollution permit case
May 29, 2015
Global trade streams and prices will remain under pressure for the remainder of 2015 and perhaps longer due to trade bans on poultry breeding stock in importing countries, according to the recently released poultry quarterly report from Rabobank.

“Poultry industry fundamentals are facing meaningful headwinds with stronger than expected feed prices due to a strong US dollar, increased competition from falling pork prices and restrictions on trade,” said Nan-Dirk Mulder, Rabobank animal protein analyst. “Prices for whole chicken, leg quarters and chicken feet are declining further, while breast meat prices remain relatively strong.”

Rabobank analysts said they believe a global approach to dealing with avian flu is more important than ever. This includes developing strict biosecurity standards and adjusted industry business models to deal with the new market reality.

According to the report, the regional outlook for the poultry industry is as follows:

European Union: Slight margin recovery. Improved trade position due to weak euro and possible lifting of avian flu related trade restrictions.

US: Wave of HPAI outbreaks, but broiler sector less impacted. Margins still strong on robust local market demand.

Brazil: Competitive position in global trade. Weak real and avian flu bans for competitors.

Russia: Less bullish market, with ongoing higher feed costs and removal wheat export tax.

China: Fewer avian flu cases, but still big impact. Margins to lowest level in five years.

Thailand: Oversupply despite strong exports.

South Africa: Improved margins, but outlook more clouded on likely return of EU exporters.

 The report can be accessed here. 

KEYWORDS: global economy meat industry

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Jeremy Gerrard was Food Engineering's Digital/Online Editor. He is a graduate of Auburn University with a degree in journalism. His previous work experience includes years spent as a reporter with the Daily Local News out of Chester County, PA. In addition to writing feature articles for Food Engineering, Jeremy covered the Dry Processing, Field Reports and People and Industry news sections.

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