Rabobank: Russia ban won't pressure poultry markets
Sept. 16, 2014
by Meat&Poultry Staff
UTRECHT, Netherlands – The global poultry industry can expect to do big business for the remainder of 2014 despite Russia's ban on poultry imports, according to Rabobank's quarterly poultry report.
Rabobank reported a positive outlook for global poultry markets, characterized by margin expansion in nearly all major poultry production regions. Strong fundamentals and lower feed costs will more than offset any negative impacts on the poultry industries of the United States and European Union. However, Rabobank forecasted stiff competition between the EU and US for new markets in Africa, Asia and some Eastern European markets.
"The global outlook for the poultry industry is bullish for the remainder of 2014." said Nan-Dirk Nulder, Rabobank analyst. "We expect strong fundamentals to keep white meat prices high, while dark meat prices may come under some pressure."
Brazil will be the big winner as a result of the Russia poultry ban, Rabobank noted. Exports currently drive a positive outlook, although weak consumer demand is pressuring Brazil's domestic poultry market.
Asian poultry markets will recover despite ongoing food safety and disease issues, Rabobank reported. China's supply chain discipline will support higher prices and margin recovery.
Poultry markets in Russian and South Africa will see sharp increases in prices as both countries operate under tight market conditions and weak demand. Growth in margins will depend on the possible establishment of a price ceiling by the Russian government, Rabobank reported.