Economic downturn dims positive outlook for poultry, Rabobank says
Economic downturn and operational challenges have dimmed the positive outlook for poultry markets, according to Rabobank research.
Demand remains strong and supply limited, but the context is changing, the firm said in its latest analysis, published on Monday (19 December).
An economic downturn will affect market conditions, ongoing high inflation will pressure consumer spending power, and operational issues will continue to challenge producers.
Although a rising number of countries are risking oversupply, global markets are expected to stay strong in 2023, with global poultry demand expected to benefit from consumers trading down to cheaper animal proteins.
However, in many countries, demand growth will be restricted by tight supply, leading to ongoing high prices. Global economic growth is expected to fall, while inflation is expected to stay high.
Nan-Dirk Mulder, senior analyst at Rabobank, said: “This will pressure demand as consumers become more price-driven and raise the question of what price consumers are prepared to pay.
Farming UK
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