Asia powers poultry expansion amid global volatility

Asia Pacific: Driving global expansion

Asia Pacific is the strongest growth engine, with consumption rising 3-5% across China, India, and Southeast Asia. Poultry’s affordability ensures resilience even as economic conditions weaken in some countries.

Global poultry trade – record high export level. China’s rapid export growth has reshaped global poultry trade, surpassing Thailand and challenging Brazil’s dominance. Source: Rabobank Global Poultry Quarterly Q2 2026 Report

Southeast Asia: Export strength and domestic challenges

Thailand’s poultry sector is benefiting from strong international demand, particularly for processed chicken, which continues to command premium prices in key export markets. Export growth is supported by disciplined supply management, with producers carefully balancing output against limited hatching egg availability. However, the domestic market remains fragile. Weak tourism flows and sluggish consumer spending are constraining local demand, leaving exports as the main growth driver.

Live chicken and grain/oilseed price monitor. Feed prices for wheat, corn, and soymeal show upward pressure, challenging producers in Southeast Asia and South Asia. Source: Rabobank Global Poultry Quarterly Q2 2026 Report

The Philippines and Indonesia are highlighted as among Southeast Asia’s best-performing markets. Both countries contribute to the region’s overall growth, supported by rising urban populations and middle-class demand for affordable protein. Higher feed costs remain a challenge, but disciplined production strategies and resilient consumer demand are helping sustain margins.

South Asia: India’s expanding market

India continues to drive poultry consumption growth, with demand rising strongly as poultry remains the most affordable protein compared to beef and mutton. Producers are expanding capacity to meet this demand, but rising fertilizer costs are pushing feed prices higher, creating margin pressure.

Despite these challenges, India’s poultry sector remains resilient. Strong domestic consumption is expected to offset cost pressures, and poultry continues to play a central role in food security strategies across the region.

East Asia: China’s export surge and regional trends

China’s poultry industry is undergoing a structural shift. With production expanding 7.5% in 2025, supply has outpaced domestic demand, leading to depressed local prices. Export suspensions to the Middle East created short-term inventory challenges, but China’s aggressive pricing strategy has enabled rapid penetration into new markets.

Exports rose 58% in Q4 2025, surpassing Thailand to become the world’s fourth-largest chicken exporter. Processed chicken exports grew 12% year-on-year, with prices around USD 3500/ton, significantly below global averages. This pricing advantage is accelerating China’s market share gains.

Japan presents mixed market conditions. Production remains stable, but rising input costs are a concern. Consumers continue to show thriftiness, limiting growth in raw chicken imports, though processed chicken imports are expected to remain steady.

South Korea’s poultry market is relatively stable, with consumption supported by strong domestic demand. However, rising feed costs and broader regional volatility could weigh on margins.

Rising feed costs and oversupply remain challenges for local producers, but China’s export momentum, combined with Japan’s cautious demand and Korea’s steady consumption, is reshaping competition in East Asia.

Outlook: Growth with volatility

Rabobank concludes that Asia will remain the leading growth region in 2026. However, volatility from geopolitical risks, feed costs, and avian influenza will shape market dynamics. Poultry’s affordability ensures continued demand, but resilience will be tested.