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According to a report prepared by Nan-Dirk Mulder, Senior Analyst-Animal Protein for Rabobank, prospects for the global chicken industry are improving.  Current challenges include:-

• Depressed production due to COVID restrictions and economic decline

• Avian influenza has resulted in severe losses in Asia, Russia and in some eastern E.U. nations.  Countries relying on imports of fertile eggs or chicks have experienced disruption in their supply chains.

• Overproduction persists in South Africa, Thailand and in the European Union.

• Feed prices will remain at elevated levels attributed to demand including imports of soybeans and corn by China and lower yields attributed to the effect of a dwindling La Nina event.

Mulder pointed to high competition and depressed trade, requiring producers to carefully plan production levels and expansion.  There are limits to cost reduction given the ingredient situation exacerbated by market speculation.