High demand, tight production make for bullish poultry market

Despite cost pressures and operational challenges, the global poultry market is bullish with high demand and tight supply, Rabobank said in its Q3 2022 report.

Senior analyst of Animal Protein at Rabobank, Nan-Dirk Mulder suggested the industry’s biggest challenge is operational with high feed and energy prices due to inflation, labor availability and avian influenza (AI).

Gas prices are more than double Q2 2020 levels. Europe has especially been impacted by gas prices because of its strong dependence on Russia for the resource. Soymeal is also up by 60%. Rabobank expects feed prices to stay high but below their Q2 peaks.

Rabobank noted the significant impact of AI on the global poultry industry. Europe experienced the highest-pressure AI season in history with 53 million birds culled. The highly pathogenic avian influenza hit the United States in February, with 38 million birds culled in the leading months. Japan, the Philippines, Mexico and Russia have also seen outbreaks. Read more