The American poultry market is struggling with oversupply amid record-high production of broilers and red meat, which has already led to low domestic prices and high stocks in cold storage warehouses, said Nan-Dirk Mulder, senior analyst at Rabobank.
The prospects for the global poultry industry will gradually improve as the year progresses. The biggest improvements are likely to be expected in the second half of 2019, due to the increase in Chinese imports caused by the effects of African swine fever. The ASF spread in China and the growing demand for other types of meat besides pork are expected to lead to an increase in imports of poultry meat, especially from the USA, Mulder notes.
According to preliminary forecasts, poultry meat production in the US in 2019 likely will slow down. Rabobank's quarterly report showed that record-breaking high broiler production in the United States (1.76M tons in October) lowered prices for breast meat to historic lows, and most poultry enterprises experienced significant losses in the last weeks of 2018. "The demand for chicken meat remains weak, as large stocks of competing proteins, especially pork, put strong pressure on the retail market," expert explains.
Source: meatinfo.ru.
