21.10.2016

Despite lower broiler prices at the beginning of 2016,EU poultry production expanded further during the first half of 2016 by 6%. Except for France, all other main producing Member States have reported an increase: Poland (+15%), Spain (+8%), Italy (+6%),the Netherlands (+5%) and the UK (+4%). Bird restocking in France after the outbreak of avian influenza is not yet showing up in the slaughterings,but will probably be noticeable in the second half of the year. At EU level, growth is expected to continue in the second half of 2016 as placings of chicks are staying at the same high level as previous months.
Overall, EU poultry production is expected to grow by 4% in 2016, because the lower EU prices might lead to a slowdown in the production increase in the remaining months of the year. However, this production rise follows two consecutive years of 4% growth already.
As consumption in the EU is reaching a more mature level and competition on the world market from Brazil and the US limits further development of exports, prices might continue to experience downward pressure.
Poultry prices in the EU have stayed below 185 EUR/100kg since October 2015. Starting from May 2016, poultry prices followed a downward path to reach 175 EUR/100kg due to the abundant supply, 8% below last year's price level. These lower prices give the opportunity to increase exports, which are expected to reach 10% in 2016 compared to 2015, and to stagnate in 2017, despite the strong international competition.
EU poultry meat imports increased by 6% in the first half of 2016, mainly due to an increase in imports from Brazil and Chile, which doubled its exports to the EU.