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According to a recent Rabobank report, chicken for the global poultry industry, in the last quarter of 2022, chicken is forecast to remain affordable in times of higher costs and supply challenges.
The outlook for the global poultry industry in the fourth quarter of 2022 and early 2023 remains strong, despite significant challenges in global poultry farming and some recent setbacks in North America, according to a recent Rabobank report.
- From a market perspective, a weaker economic climate with pressure on purchasing power will lead to more price-driven consumer behavior, supporting poultry consumption as it is the cheapest meat protein option.
MARKET PERFORMANCE
The local economy’s dependence on energy trading will also influence market performance.
- South and South-East Asia, the Middle East, and Africa will perform better than Europe, Northeast Asia, and North America.
- The risks of COVID-19 are still present and could cause a new interruption in the winter season in the northern hemisphere and indirectly in international trade.
OPERATIONAL CHALLENGES
The biggest operational challenges are:
- The high prices of balanced feed,
- The increase in energy prices in countries dependent on imports,
- The high distribution costs,
- The rise in labor costs and
- The constant concerns about Avian Influenza.
Rabobank expects feed prices to approach Q1 levels for the remainder of 2022 and early 2023, which is 10% to 15% below the Q2 peak.
THE GREAT INFLATION
High-cost price inflation, among other inputs, means there is little room to lower chicken prices. This is especially the case in Europe, where winter energy futures prices reach up to 10 times higher than average.
- This could affect agriculture and processing, with rising costs, concerns about the availability of CO2 for gas stunning, and
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