A report from Rabobank shows the poultry industry has an opportunity to flourish if it can take advantage of current economic trends and control the supply/demand balance.
High retails prices for pork and beef have consumers turning to the cheaper protein alternative. The trend is occurring globally and countries that are able to avoid oversupply will benefit the most.
According to Rabobank, Russia and Ukraine are in the best position with high margins, good supply and growing local demand. Brazil also has a good opportunity due to its disciplined supply management whereas South Africa, India and Thailand are dealing with oversupply.
If countries around the world are able to balance supply and demand, they still face the high feed costs troubling other livestock producers. Rabobank expects feed price increases to slow, however low stock levels may keep the market volatile.
A report earlier this week by the American Meat Institute and the Food Marketing Institute shows high prices have already pushed beef consumption lower. The study found 93 percent of survey respondents consume meat or poultry at least one time per week but the number of home-cooked meals containing meat or poultry fell from 4.1 to 3.6 meals per week.