Improved economic conditions in many regions, together with ongoing high prices for other proteins, make poultry an attractive option for worldwide consumers. Rabobank says global consumption growth is predicted to reach 2.5 to three percent this year. This marks the second year of above-average market growth, which led to significant improvements in margin performance. However, dealing with avian influenza remains a significant challenge for the U.S. poultry industry and one of its biggest concerns.
Additionally, the supply of parent stock remains tight, and hatching egg prices are still high, restricting growth. Aside from the ongoing flu risk, rising geopolitical tensions and competition pose the biggest challenges for global trade. The geopolitical tension includes U.S. tariffs on imports and retaliatory tariffs on U.S. poultry from affected regions, which could lead to a trade war and shifting global trade flows.
-NAFB