A weakening global economy will push budget-conscious consumers to buy more poultry this year and into early 2023, according to a new report from Rabobank.
However, the research firm found that rising feed, distribution and labor costs are the main challenges for poultry production businesses, especially in Europe, North America and Northeast Asia, and energy costs are also an issue.
Analyst Nan-Dirk Mulder and colleagues say bird flu also remains a major concern, with summer outbreaks continuing in Europe, the United States, Canada and Mexico. This is highly unusual as it is a sign that the virus is becoming more endemic and requires a committed approach from producers,” they explained. U.S. production is expected to grow by 1.7% in 2022 amid plummeting breast and chicken wing prices. Rabobank called the country’s outlook “moderately optimistic” but weaker than in the first half of the year.
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