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Poland Leads EU Poultry Meat Production

28 September 2016

EU - The EU's broiler sector is expected to continue to grow in 2016 and 2017, benefiting from increased exports and slowly increasing domestic demand, according to the latest report from the US Department of Agriculture's Foreign Agricultural Service (FAS).

Broiler meat production is expected to increase this year from 2015 levels in most major EU producing countries, especially in Poland, which is now the leading broiler meat producing country out of the Eu's 28 member states.

The significant decline in grain prices since 2014 boosted broiler meat competitiveness and increased operating margins, even as retail prices decreased. This trend is expected to continue in 2016 and 2017, FAS said.

The EU-28 broiler trade surplus is expected to increase in 2016 and 2017 in light of stagnant imports and surging exports.

Brazil and Thailand remain the largest suppliers of broiler meat to the EU. There has been a surge in Thai exports of uncooked broiler meat to the EU since markets opened in 2012, to the detriment of Brazilian exports, as the quality of Thai broiler meat better suits EU importer needs, FAS said.

The signature of the Deep and Comprehensive Free Trade Agreement (DCFTA) between the EU- 28 and Ukraine led to a surge of Ukrainian broiler meat exports to the EU-28 which are now expected to reach 37,000 MT in 2016.

EU-28 broiler meat exports are expected to increase in 2016 despite the Russian embargo on certain EU food products remaining in pace and the decrease in exports to the Middle-East region, due to the stagnant demand in Saudi Arabia and the political situation in Yemen.

The increase in exports is mainly to Sub-Saharan Africa and Asia (such as Philippines and Malaysia), driven by lower production costs, due to lower world grain prices and increasing EU-28 broiler price competitiveness. The growth of exports is expected to continue in 2017.

While all sources show that total meat consumption in the EU has been negatively impacted by the economic downturn in Europe, poultry meat, which is the cheapest source of protein, was less affected. Its consumption per capita is stable or slightly increasing. Sales of cheaper broiler cuts also increased faster than sales of more expensive parts, such as breasts or whole birds.

Further Reading

You can view the full report by clicking here.

ThePoultrySite News Desk

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