EU-28 broiler meat production is expected to increase in 2016 to 10.8 MMT March 18, 2016

Report Highlights:

The EU-28 broiler meat production is expected to increase in 2016. Consumers have been switching from other meats to broiler meat (cheaper and more convenient), due to difficult economic situation in the EU-28 region, driving increases in domestic poultry consumption. EU-28 broiler meat imports are still forecast to remain flat in 2016 with lower imports from Brazil and higher imports from Ukraine. EU-28 broiler meat exports in 2016 are expected to increase slightly despite lower exports to South Africa, because of a resumption of exports of whole broilers (mostly from France) to Saudi Arabia and parts to new markets, such as the Philippines and Ukraine.

Production:

The EU-28 broiler meat production forecast for 2016 has been increased 1.5 percent from 2015, with the biggest hikes taking place in France, Poland, and United Kingdom due to strong domestic demand and strong exports. Production is expected to remain stable in Germany, mainly because of stricter welfare rules, and to decline slightly in Spain, due to excessive pressure on producer margins. The local outbreaks of Avian Influenza (AI) in several EU-28 member States, notably France and Germany, are not expected to have any significant impact on the production levels. Note that 2014 broiler production has been lowered, because of revised production data received from Spain and Hungary.

Consumption:

The EU-28 domestic consumption of broiler meat is still expected to increase slightly more than total population growth in 2016, indicating a small increase in per-capita consumption. This is due to the switch from other meats to broiler meat, mainly because of the difficult economic situation in the EU-28 region.

Trade:

Broiler meat imports are expected to remain flat in 2016, due to the economic situation in the EU-28 region and the competiveness of domestically produced broiler meat. Ukraine is becoming an important supplier of broiler meat to the EU-28, displacing imports from Brazil.

After a disappointing year in 2015 which led to very slow growth, mainly due to the South African anti-dumping tariff on broiler meat from several EU countries and lower exports to Benin and Hong Kong, EU-28 broiler meat exports in 2016 are expected to resume growth with increased exports to Saudi Arabia, Philippines, Ghana and Ukraine.