EU poultry sector set for further expansion

The European Commission has projected a steady expansion of the poultry meat sector in 2015 and 2016. Its latest short-term outlook suggests growth in production supported by the continued affordability of feed, on the back of strong worldwide harvests.

In the first half of 2015, production increased by 3.6% compared to the same period in 2014. For 2015 as a whole, poultry meat production is expected to rise by 2.6% year-on-year to reach 13.6 million tonnes. Modest growth of1.1% is expected in 2016.

EU poultry exports

In terms of trade, EU poultry meat exports in the first half of 2015 grew by 2%. The Philippines, Benin, Saudi Arabia and Ghana contributed most to compensate the loss of the Russian market. Exports to Ukraine increased further to reach 27,500 tonnes during the same period.

There was a decline in poultry meat trade to Hong Kong as a result of increasing exports to China. Throughout 2015, exports are projected to grow by 3.5% to reach 1.4 million tonnes, driven by the strong demand from some Asian and African countries. In 2016, overall EU export growth is expected to be limited to 25,000 tonnes on 2015 as more competition is expected from the US and Brazil on the world market.

EU poultry imports

EU poultry meat imports in the first six months of 2015 increased by 2%. Volumes coming from Brazil showed a strong decline (-25,000 tonnes) as the country increases exports to non-EU markets and the internal economic downturn reduces domestic beef meat sales to the benefit of cheaper meats like poultry. However, Thailand easily filled this gap despite the internal political tensions.

After a drop at the end of April, poultry meat prices recovered and stayed within the €190-195/100kg c/w for several week months, before showing the first signs of the seasonal decline expected in September and October. After the strong increase in 2014, EU per capita consumption is expected to increase at a slower pace to 22.5kg and 22.7kg c/w in 2015 and 2016 respectively, according the EU projections.

Source: NFU