The significant improvement of global poultry markets in the second and third quarters of 2021 has led most regions into profitable market conditions. As highlighted by Rabobank’s poultry market report for the fourth quarter, economies are slowly reopening after the pandemic. This benefits demand growth, especially in the Americas where industry profitability has improved. The big global exception is Southeast Asia, where the Delta strain of COVID-19 is having the greatest impact.

Key issues

The global outlook for Q4 of 2021 is relatively positive, with ongoing strong demand and restricted supply, relatively flat (but high) feed prices, and further increases in trade volumes driven by the recovering foodservice industry. However, in some countries, this has created food inflation concerns. The wild card for this outlook remains Covid-19. Depending on how it develops, Covid-19 could shake up the more fragile markets, like Europe and Southeast Asia.

Other highlights of Rabobank’s report:

  • Local market conditions are stronger in all key regions, except Southeast Asia, due to the reopening of economies and relatively restrictive local supply. The US, Mexico, Russia, and Japan face particularly strong markets with good profitability for local producers.
  • Supply growth in the second half of 2021 will be restricted in many regions by labor shortage issues, which are especially affecting production in the US, the UK, and Thailand. Furthermore, ongoing Avian influenza risks and high feed prices are impacting supply worldwide.
  • Feed prices are expected to stay relatively flat, with some increase in wheat prices due to weaker availability from the European Union and Russia. Soymeal prices have been dropping due to demand rationalization and an increased focus on oil.
  • Global trade saw a strong recovery in the second quarter of 2021, with trade volumes at historical highs. Brazil and the US have benefited the most from strong trade, while exports from Europe, Russia, and Ukraine have dropped due to Avian influenza and slowing Chinese imports.

Chilean poultry industry: good results expected for this year

Regarding Chilean poultry export figures (chicken and turkey), there was a slight increase in value in 2021 compared to 2020, a year marked by the health crisis that shook the world.
In the first half of 2021, Chilean poultry exports reached 117.9 million USD, while during the same period of 2020, 96.9 million USD were exported. The primary destination countries were: The US (62.9 million USD), Mexico (24.1 million USD), China (13.8 million USD), and Peru (4.3 million USD).