EUROTIER ▶▶▶
Another challenge for poultry producers is that feed prices for the poultry industry have risen by 50-60% as confirmed by Mulder. To conclude he remarked: “This is going to be a chal- lenging year, especially the first half. We absolutely need to be restrictive in supply and high feed costs will hurt. The sec- ond half will be better. If you are an investor in this industry, the future will be good but you will have to withstand this tough stage first.”
Leopold Graf von Drechsel chief executive officer at WIMEX Agri-production, explained some of the things that are currently hurting the export and import trade for poultry produce.
Nan-Dirk. “One third of all the poultry sold internationally goes to food service. In the US it is 45%, so you can imagine, any restriction on food service will have a big impact on the poultry industry. This year we think the market will still be challenging because of the current lockdowns across Europe and because of the restrictions in the US. With the roll out of vaccines later in the year we expect this will help to recoup some of the market as food service sectors start to open up,” he added.
South America Nicolo Cinotti from the International Poultry Council (IPC) touched upon the situation in South America where he said there were no cases of avian influenza or African swine fever. With just the Covid-19 pandemic left to affect poultry pro- duction in South America Nicolo reported: “The poultry sec- tor there is in fairly good shape and has shown remarkable resilience. In 2020 poultry meat production in Brazil recorded an increase of 4.2% and plus 0.5% for export over the 2019 data.” “As for the internal market, of course, the shutdown of the food service sector hurt the industry in South America too,” he continued. Nicolo did point out that there was also new demand for cuts of meat like chicken legs which had helped the domestic market along with more people rediscovering home cooking.
President of the International Poultry Council, Robin Horel foresees a positive future for the poultry industry.
8 ▶ POULTRY WORLD | No. 2, 2021
China and Russia Lei Jin from Depthfield, a consultancy and trading company in agricultural products, discussed the situation in China. Lei said that China had operated differently to other countries during Covid-19 and is the only large economy with positive growth in 2020. From 2019 meat consumption in China has shifted, with increased numbers of people favouring poultry meat instead of pork due to the African swine fever out- breaks. Poultry prices in China are also undergoing a recovery as more people are eating out now with the easing of Cov- id-19 restrictions. Lei added that meat consumption in China will increase and with it, meat imports to China will also increase going forward. The two dominant countries export- ing poultry meat to China are Russia and the US, while Chile, Argentina and Turkey are also key players. The only two coun- tries in Europe that have agreements to export poultry meat to China are France and Poland but these are currently banned due to outbreaks, which means no European country can export there right now. Sergey Lakhtyukhov from the Russian Poultry Union said the poultry meat sector in Russia had not been greatly impacted by the Covid-19 pandemic but at the same time it has had other challenges. “The crucial thing for us was that we could avoid the disruption of the supply chain but we did have local difficulties with our econ- omy,” he said. “Now we are more affected by high feed prices.” Russian exports of poultry meat are still affected by the pandemic but half of its exports in 2020 still went to China.
PHOTO: INTERNATIONAL POULTRY COUNCIL
PHOTO: HENK RISWICK
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