A Rabobank report says a historic drop in poultry exports from Brazil is shaking up trade in the commodity around the world. The latest quarterly outlook on the industry says African Swine Fever could also indirectly affect the industry.
Global poultry prices dropped by an average of five to 10 percent in the second quarter of this year.
African Swine Fever outbreaks in China may lead to an increase in pork supply because of herd liquidation through the end of the year. That may push all meat prices lower in the months ahead. Analysts in the report say that drop could reverse by 2019. “Chinese consumers may turn from pork to poultry and push prices somewhat higher,” the report says. “While this can paint a pessimistic picture, in reality, the poultry industry performance is still solid around the world.”
In the U.S., Rabobank says prices are weakening and margins are going to be soft as protein supplies rise. The industry is still profitable, as it’s being helped by growing exports to Cuba, Taiwan, and Vietnam.
Overseas, Rabobank says local poultry industries in Asia, Africa, and Europe are all enjoying profitable margins thanks to balanced supply and demand.
Source: National Association of Farm Broadcasting News Service.