The Rabobank quarterly industry report is optimistic with respect to demand and trade volume for chicken. The outstanding problem relates to increased cost of production, due in part to the invasion of Ukraine by the Russian Federation and drought in Brazil and neighboring nations, impacting availability of ingredients. Demand will be strengthened as nations relax COVID restrictions, leading to higher restaurant and QSR servings, providing customers have available disposable income.
Avian influenza remains an ongoing threat with the 2021-2022 panornitic continuing in many nations. The large number of wild birds species affected, suggests that H5N1 infection may become endemic and lead to additional cases in both commercial and backyard flocks. Outbreaks of HPAI in the E.U. and the U.S. have disrupted shipments of hatching eggs and breeding stock. This will be of significance to nations depending on regular supplies from the E.U.
CHICK-NEWS will quantify World production and export figures when released by USDA.