EU poultry market predicted to remain stable in 2008

Last year saw the European chicken market recover from the effects of avian flu seen in 2006 with broiler wholesale prices up by 18%, according to the Bord Bia’s latest report.

Bord Bia’s (Irish food board) Export Review and Outlook 2007/2008 showed that Irish production rose by 3% and broiler output by 7%, culminating in exports of E253m (£187m) million – up by 5% on 2006.

Processed poultry, including value-added products and chilled cuts, made up 60% of total Irish exports in value terms and the UK is the key market.

While there was increased EU demand for poultry, there were also higher costs in feed, energy packaging and labour. There was also competition from cooked poultry imported into the EU from Thailand

Bord Bia predicts that the EU market for poultry will remain stable in 2008 with production and consumption levels up by 2%. A modest price increase for poultry is also expected.

High feed costs should curb any major rise in output, but if output does increase significantly, this could put pressure on poultry prices. Likewise if imports from Thailand and elsewhere increase so too will competitive pressure within the poultry sector.