out, however, that the industry was well-prepared for the cur- rent crisis. The country’s feed production is highly consolidat- ed, and big companies have better chances of making it through the hard times without risking going down. “The consolidation in the feed industry has led to a significant con- centration of production and revenues. it’s estimated that around 45% of the feed industry’s production comes from the five largest feed companies. The share of medium-sized com- panies accounts for approximately 40%, while small enter- prises employing up to 50 people constituted around 14% of the sector’s revenues,’ Zymerman said.
Feed determines profitability The Polish feed market’s price dynamics over the past few months have been following the fluctuations on the poultry and egg market. For instance, in April of 2020, the average purchasing price for broiler meat on the Polish market was PLN 3.34 ($ 0.84) per kg, 13.9% down compared to April of 2019, according to research conducted by the Polish consult- ing agency Crédit Agricole . The poultry feed price amounted to PLN 1.39 ($ 0.35) per kg, 3.8% lower than during the same time as the previous year.” As a result, the ratio of broiler meat prices to feed prices was 2.4 compared to 2.68 in the previous year, which indicates a strong reduction in business
profitability in the poultry industry on a year-to-year basis,” Crédit Agricole said. “Given the conditions on the domestic and global poultry markets, we forecast that prices would reach PLN 3.75 ($ 0.94) at the end of 2020 and PLN 3.85 ($ 0.97) at the end of 2021,” Crédit Agricole added. The picture is different in the egg segment. The average price for 100 eggs in April of 2020 climbed to PLN 30.8 ($ 7.78) per 100 eggs, 12.4% higher compared to April of 2019. The price of feed for hens has dropped by 5.9% to PLN 1.2 per kg ($ 0.3). This resulted in the profitability index improving sig- nificantly from 21.58 to 25.78, reflecting a major improve- ment in business profitability. The price for eggs is predicted to rise to PLN ($ 8.84) 35 at the end of 2020 and PLN 36 ($ 9.1) at the end of 2021. Profitability will be essential for poultry producers in Poland in the years to come. According to Dari- usz Goszczynski, director of the Polish National Poultry Coun- cil – Chamber of Commerce, the industry is currently putting a lot of effort not only into resuming supplies disrupted by the pandemic, but also into exploring new markets in Asia and Africa. The result of that effort should to a great extent determine the future of the Polish feed industry. The industry has to be competitive in order to be more successful than its new dangerous rivals on the global market – Ukraine and Brazil, Goszczynski said.
▶ ALL ABOUT FEED | Volume 28, No. 6, 2020
Feed mills in Po- land are recover- ing after the pandemic.
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