Global poultry markets are heading into the final week of March under a broadly bearish price signal, with both Brazilian and Thai origins posting week-on-week declines across whole birds, breast meat and wings. Record Brazilian export volumes are the primary structural driver of the downward trend.
Brazil sets export records as China returns
Brazilian poultry exports reached 493.2 KMT in February, with average daily export volumes continuing to increase into week three of March. In a notable development, China became Brazil’s top export destination for the first time since the HPAI outbreak, with February shipments to China reaching 49.5 KMT, a 48% month-on-month increase.
Despite ongoing uncertainty linked to the Middle East conflict, which has prompted more cautious deal-making among market participants, export momentum has continued. The outlook points to further price declines as total exported volumes keep increasing.
European markets under pressure from multiple sides
In Europe, the picture is similarly soft. Slaughter volumes are low, demand at the start of the year is weak, and prices in France and Spain are trending downward. The Netherlands has seen prices remain largely flat.
The Middle East conflict is adding to production cost pressures in Europe, with higher energy, fertilizer and feed costs all feeding into protein production expenses. This could push European production prices structurally higher over the longer term, even as current demand remains subdued.
Disease pressure adds a watchpoint
Newcastle Disease has been confirmed at two broiler production sites in Poland, affecting a combined total of over 500,000 birds. Poland is also continuing to manage HPAI outbreaks. In the UK, a trial HPAI vaccination programme in turkeys was launched at the beginning of March, with a potential wider rollout if the trial proves successful.
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