Sunday, July 14, 2024

Rabobank: AI, global supply rebalancing, key themes for 2016

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NEW YORK — Excessive supply expansion has outstripped continued strong fundamentals — robust demand, ongoing low feed prices and relatively high competitive protein prices — in recent months, after multiple quarters of balanced supply/demand. This is pressuring producer profitability in most regions of the world and global chicken meat prices have dropped significantly, says the Rabobank Poultry Quarterly Q4.

Key for the industry's 2016 outlook is a rebalancing of supply to new market conditions. An improved market balance will also protect the industry better against potential negative market effects from increased avian influenza (AI) risk in the northern hemisphere during coming. . .

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