Poultry News
  • Production
    • Broiler Production
    • Ducks
    • Egg Production
    • Game
    • Hatching
    • Housing
    • Turkeys
  • Processing
  • Business & Politics
    • Business
    • Economics
    • EU & Politics
    • Marketing
    • People
    • Training & Education
  • Welfare
    • Environment
    • Food Safety
    • Vet & Medication
    • Welfare
  • Feed
  • Genetics
  • New Products
  • Magazines
    • July 2025
    • 2025 National Egg and Poultry Awards finalists supplement
    • June 2025
    • 2025 Innovation supplement
    • May 2025
    • April 2025
    • March 2025
    • 2025 Feed and Nutrition supplement
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • 2024 Building for the Future supplement
    • August 2024
    • 2024 Poultry Health supplement
    • July 2024
    • 2024 National Egg and Poultry Awards finalists supplement
    • June 2024
    • 2024 Innovation supplement
    • Pig & Poultry Fair 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • Processing Equipment Supplement – Nov 2023
    • October 2023
    • Building Supplement – Sept 2023
    • September 2023
  • Jobs
    • Browse Jobs
    • Post a Job
    • Manage Jobs
  • Events
    • National Egg and Poultry Awards
    • Poultry Fair
    • Webinars
Twitter LinkedIn
  • FREE Email Newsletters
  • About Us
  • Advertise
  • Subscribe
  • Contact Us
Twitter LinkedIn
Podcast
Poultry News
  • Production
    • Broiler Production
    • Ducks
    • Egg Production
    • Game
    • Hatching
    • Housing
    • Turkeys
  • Processing
  • Business & Politics
    • Business
    • Economics
    • EU & Politics
    • Marketing
    • People
    • Training & Education
  • Welfare
    • Environment
    • Food Safety
    • Vet & Medication
    • Welfare
  • Feed
  • Genetics
  • New Products
  • Magazines
    1. July 2025
    2. 2025 National Egg and Poultry Awards finalists supplement
    3. June 2025
    4. 2025 Innovation supplement
    5. May 2025
    6. April 2025
    7. March 2025
    8. 2025 Feed and Nutrition supplement
    9. February 2025
    10. January 2025
    11. December 2024
    12. November 2024
    13. October 2024
    14. September 2024
    15. 2024 Building for the Future supplement
    16. August 2024
    17. 2024 Poultry Health supplement
    18. July 2024
    19. 2024 National Egg and Poultry Awards finalists supplement
    20. June 2024
    21. 2024 Innovation supplement
    22. Pig & Poultry Fair 2024
    23. May 2024
    24. April 2024
    25. March 2024
    26. February 2024
    27. January 2024
    28. December 2023
    29. November 2023
    30. Processing Equipment Supplement – Nov 2023
    31. October 2023
    32. Building Supplement – Sept 2023
    33. September 2023
    Featured

    Poultry Business – July 2025 issue

    By Chloe RyanJuly 1, 2025
    Recent

    Poultry Business – July 2025 issue

    July 1, 2025

    Poultry Business – 2025 National Egg and Poultry Awards finalists supplement

    July 1, 2025

    Poultry Business – June 2025 issue

    June 9, 2025
  • Jobs
    • Browse Jobs
    • Post a Job
    • Manage Jobs
  • Events
    • National Egg and Poultry Awards
    • Poultry Fair
    • Webinars
Twitter LinkedIn
Poultry News
Business & Politics

Analysis: Global poultry industry faces volatility

Chloe RyanBy Chloe RyanOctober 6, 20204 Mins Read
Facebook Twitter LinkedIn Email
Share
Facebook Twitter LinkedIn Email

The pandemic will continue to shake international poultry markets for the next six months. But it will also lead to some permanent changes.

2020 has been a volatile year in the global poultry industry, with huge disruption to the foodservice and wholesale markets, and increased demand from retail.

This volatility likely to continue for at least the next six months, but the COVID-19 pandemic will also lead to more permanent changes. There will be a permanent shift to more online grocery shopping, with Tesco predicting demand will be up to 1.8 million shops per week by the end of the year, compared to 600,000 in January. In addition, the breakthrough of remote working will change poultry markets forever, with foodservice outlets catering to office workers becoming redundant.

European poultry markets have been disrupted like never before with foodservice demand down 40% in 2020 compared to 2019. Predicted sales for 2021 by Rabobank show foodservice sales will be down 10% compared to 2019.

Across Europe, the sudden drop in demand through foodservice led to a sharp drop in prices. There are still big challenges in balancing supply and demand. The gradual easing of restrictions since July led to some increase in foodservice demand, although it is still down significantly.

The forthcoming recession is likely to benefit sales of poultrymeat and eggs, as consumers trade down from more expensive proteins.

Remote working here to stay

According to Nan-Dirk Mulder, senior analyst of animal protein at Rabobank, across Europe, COVID- will push structural change in the poultry industry in Europe, and the shift from out-of-home to at home will to some extent remain permanent.

In a recent AVEC webinar, Mulder said the shift to remote working will alter the poultry market forever with 75% of companies surveyed saying some staff would continue to work remotely. This will drive a permanent shift away from the food-to-go market, lunchtime restaurants, and into fresh, premium products.

African Swine Fever drives poultry consumption

Over the whole year, there is likely to be a slight increase in global poultry production (+0.8% YOY). This is the result of poultry expansion in China and Vietnam – where African swine fever (ASF) has reduced pork availability – and also from expansion in the US.

The rest of the world will be operating in an environment of shrinking production. There is a global shift from foodservice to retail, benefiting retail-focused companies.

Global trade is very competitive and volatile, with most import markets reducing volumes. “Trade into ASF-affected markets like China, the Philippines, and Vietnam has become more important, and this raises risks as local production recovers.

“Exporters like Brazil, the US, and Russia are focused on China, with export volumes expanding quickly, but with price concessions,” according to Mulder. Prices are highly pressured for all cuts, especially breast meat, legs, and feet.

“Balancing local supply with volatile demand will be the big challenge for global producers, and the experience so far this year shows how difficult this is,” says Mulder.

Differences in expected poultry production growth are bigger than ever, ranging from 15% growth in China to 5% in Vietnam, contrasting with -8% in Thailand and more than -10% in India.

Rabobank Outlook for 2020/early 2021: highly volatile and price-driven market conditions 

US: Oversupply to pressure prices

Ÿ 20% lower composite broiler prices, legs -42%

Ÿ Tough export markets, China key growth market

Ÿ Production to stay high (+1.5% full year)

Brazil: Rising China dependence

Ÿ Reduced supply helped prices to recover

Ÿ Exports more focused on China

Ÿ Higher feed prices challenge industry

Europe: Rebalancing supply/demand challenge

Ÿ Ongoing but improving food service demand

Ÿ 1H: imports -12%, exports -8%

Ÿ Volatility in poultry placements, high stock levels

China: Fast growing poultry supply, low prices

Ÿ Domestic production to rise 15% in 2020

Ÿ Imports Jan-Jul already higher than for FY 2019

Ÿ Low prices for live broilers and imported poultry

 

Share. Facebook Twitter LinkedIn Email
Previous ArticleGressingham launches branded goose for Christmas
Next Article Comment: This year will be unique for turkey producers
Chloe Ryan

Editor of Poultry Business, Chloe has spent the past decade writing about the food industry from farming, through manufacturing, retail and foodservice. When not working, dog walking and reading biographies are her favourite hobbies.

Read Similar Stories

Business & Politics

Pershore’s finest

July 4, 20259 Mins Read
Business & Politics

Comment: Morrisons painful decision to stock imported chicken

July 4, 20252 Mins Read
Business & Politics

Poultry farmers frustrated as avian flu insurance tied to scheme membership

July 3, 20253 Mins Read
Latest News

Pershore’s finest

July 4, 2025

Tackling red mite

July 4, 2025

Comment: Morrisons painful decision to stock imported chicken

July 4, 2025
Sponsored Content

Navigating Sustainability in Egg Production: Practical Steps for Producers

June 1, 2025

Maintain stable and continuous coccidiosis control amidst stocking density reductions

November 1, 2024
© 2024 MA Agriculture Ltd, a Mark Allen Group company

Privacy Policy | Cookies Policy | Terms & Conditions

  • Farmers Weekly
  • AA Farmer
  • Farm Contractor
  • Pig World

Type above and press Enter to search. Press Esc to cancel.