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Rabobank forecasts “moderately positive” outlook for EU poultry

Colin LeyBy Colin LeyJune 6, 20162 Mins Read
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The combined impact of a 1% increase in broiler prices and a 4% fall in feed costs helped lift EU poultry sector margins in March/April this year above 2015 levels according the latest Q2 poultry quarterly, published by Rabobank.

Commenting that, as a result, the performance of the EU poultry industry is currently “improving”, the bank said the outlook for the EU industry is “moderately positive” as we move into the summer months, when demand and prices are usually strong in comparison to other times in the year.

“Some concerns exist on the export side due to a strengthening euro,” it added, “but this could be compensated by the benefits of cheaper imported feed.”

Looking a bit deeper into non-EU export performance, the bank comments that a trading growth of 4.6% over the first two months of 2016, compared to last year, was “better than expected” with trade to South Africa, the Philippines, Hong Kong and Ukraine being especially strong.

EU poultry imports also increased in January and February 2016, however, finishing 4.5% above 2015 levels.

The bank also warned that the return of the US as an exporter after last year’s AI outbreaks will “challenge” export prices globally.

Access previous poultrynews report on Rabobank’s Q2 findings

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Colin Ley

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