Market Trends of poultry meat Industry
Brazil is anticipated to experience a strong growth in production owing to domestic and international demand
- The global production of poultry saw sizable growth during the study period, increasing at a rate of 8.20% in 2022 compared to the previous year. While elevated feed and energy costs have globally impacted profitability, the expansion is fueled by strong demand, as consumers seek affordable animal proteins amidst rising food costs. The largest poultry-producing region is Asia-Pacific, representing 40.75% of the total global production volume in 2022.
- All major producers except China are set to make profits, with Brazil witnessing the most growth. Production in China will stagnate as growth in white feather production offsets a decline in yellow feather production. The demand for affordable chicken products, particularly white-feathered chicken, is expected to increase in 2023 as Chinese consumers switch to a more diverse protein diet. Thai production is set to grow by 3% despite the expected slow recovery in domestic consumption and high production costs caused by supply disruptions for feed grains and day-old chicks. These factors will keep the growth rate below pre-COVID-19 pandemic averages.
- Brazil's production growth will be driven by domestic and global demand. In 2021, it produced 14.34 million tons of poultry meat. Russia and Mexico are also likely to grow due to strong domestic demand. EU production is expected to be only slightly higher due to rising energy costs resulting from outbreaks of highly pathogenic avian influenza (HPAI). The yield for poultry processors is expected to rise with the implementation of technology in production automation, genetical modification, biosecurity advancements, etc. It can improve poultry processing efficiency and optimize material yield through the integration of cyber-physical systems and wireless communication technologies.
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Growing poultry demand as a cheaper protein is propelling the prices worldwide
- Prices for poultry significantly increased by 11.31% in 2022 compared to 2017. There was a supply shortage, which caused chicken prices to increase. Another factor driving the price of chicken is the cost of poultry feed. Compared to previous years, the cost of corn and soybeans has been quite high, thus boosting the price of chicken once it reaches a restaurant or grocery store. Poultry prices, particularly chicken breast prices, have skyrocketed due to increasing demand, tighter supply, and a changing supply chain. Wholesale chicken prices continue to rise as demand from restaurants puts pressure on the supply of certain cuts of poultry.
- In 2024, US broiler production is expected to increase again as feed prices are expected to decrease, but broiler prices may decrease only slightly. Projected turkey prices in 2023 remained unchanged for the first half of the year, but prices are expected to decrease in 2024 as production continues to recover from highly pathogenic avian influenza (HPAI). The national wholesale price for compound broilers averaged 140.15 cents/lb in April 2023, which was down by 27 cents/lb from April 2022 but up by 10 cents from March 2023. In April, the average wholesale price for frozen whole turkeys was 169.93 cents/lb. This continues the flattening trend seen in 2023, as opposed to the recent increase throughout the year.
- In Thailand, the fourth-biggest exporter after the United States, Brazil, and the European Union, the price of birds was USD 1.82 per kilogram during the first half of 2022, depicting a one-third increase in six months. Wholesale frozen chicken prices in Brazil were USD 2.12 per kilogram on May 2023, which was more than double their 10-year average.
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