The poultry industry needs a disciplined supply growth strategy in 2018 to combat rising uncertainties such as the possible return of bird flu.
But the outlook for the global poultry industry this year remains promising with relatively positive fundamentals, according to Rabobank’s Poultry Quarterly Q1 2018 report.
“The outlook for the global poultry industry for 2018 is promising,” said Nan-Dirk Mulder, Senior Analyst – Animal Protein at Rabobank. “This promising outlook includes ongoing demand growth in most markets, except China, and low(er) feed prices in 1H 2018, if not longer. But a disciplined supply growth strategy will be needed, especially as uncertainties are rising.”
Aside from the possible return of bird flu, which usually happens during the northern hemisphere winter, another concern for poultry this year is the increasingly competitive market conditions due to rising red meat supply.
Competition from red meat will grow amid rising supply and softening prices although global prices for chicken remain strong, especially for whole chicken and breast meat.