Global Poultry Business is Expected to Rise Despite Geopolitical Problems

Global - According to a recent Rabobank analysis, conditions in the global chicken industry are progressively improving, with demand likely to climb owing to increasing affordability as wages rise and prices and inflation rates fall.

According to the research, some markets facing oversupply and dropping prices saw improvements in local circumstances during the first quarter of 2024, owing mostly to production cuts aimed at balancing supply and demand.

Analysts predict a resurgence in the global poultry industry after a slow second half of 2023, but continuing geopolitical tensions continue to pose distribution issues.

In response to these issues, leading suppliers are turning to data platforms and artificial intelligence (AI) solutions to improve efficiency and transparency.

"We expect global markets to continue to improve slightly," said Nan-Dirk Mulder, Rabobank's senior analyst for Animal Protein. While price remains a crucial predictor of market demand, its effect is predicted to decline in comparison to 2023, owing to decreasing consumer price inflation and rising earnings.

Despite these good signs, sustaining market equilibrium in the face of controlled supply increase remains difficult. The estimated 1.5-2% growth rate for 2024 is predominantly driven by emerging economies in Asia, the Middle East, Africa, and Latin America, while growth in Europe, the United States, and Japan is expected to slow.

Poultry farms are increasingly relying on digital technology to improve operational efficiency and sustainability. DSM-Firmenich, for example, is collaborating with the agricultural cooperative Agrifirm to develop a data platform that promotes responsible and transparent agriculture.

Similarly, Cargill is utilizing AI to improve the health of chicken flocks. Florian Schattenmann, Cargill's CTO and VP of R&D and Innovation, highlighted the Galleon project, which tests the DNA of chicken microbiomes to assess flock health and make feed modifications as needed.

However, geopolitical conflicts in areas such as the Black Sea and the Red Sea offer considerable distribution issues, possibly affecting global poultry commerce and related inputs.

Furthermore, avian influenza remains a worry, with threats shifting to the Southern Hemisphere in the coming months.

Key exporting nations, like as Brazil and Thailand, are especially vulnerable, and outbreaks might disrupt global market conditions and trade flow.

Against this context, the poultry market's low growth outlook corresponds with consumers' rising concern for animal welfare.

The European Chicken Commitment (ECC) is designed to push improvements in broiler chicken welfare standards, with enterprises risking reputational and financial consequences for noncompliance.