Share via Email

* Email To:

(Separate multiple addresses with a semicolon)

* Your Name:

* Email From:

(Your IP Address is 3.131.110.169)

* Email Subject:

(personalize your subject)

Email Content:

Rabobank Projects Lower Margins and Disease Impacting World Production of Chicken Meat

12/25/2020

Nan-Dirk Mulder, Senior Analyst for Animal Protein at Rabobank encapsulated the major factors influencing profitability of the chicken industry for the coming year. Areas of concern include: -

Rising ingredient prices.
The impact of COVID-19 on both domestic and export markets with disruption of consumer buying patterns.
Outbreaks of avian influenza in Europe and Asia.
Recovery of hog production in China leading to a change in consumer demand.

Nan-Dirk Mulder of Rabobank

The U.S. will experience lower export prices for commodity leg quarters and integrators will be faced with escalating feed costs that currently are the highest in six years.

According to Rabobank, Brazil has exercised control over growth in production, some of which has occurred as a result of COVID-19 in plants.

Although poultry meat production in China has increased by approximately 12 percent through 2020, a rebound in pork production will limit imports of both pork and chicken, proportional to the increase in domestic supply.

Rabobank consider that "operational excellence and procurement will be necessary given high prices for feed ingredients". The report added "optimal efficiency in procurement as well as a high level of biosecurity and planning are necessary to mitigate the risk of disease".