Analysis Chicken & Poultry
Polish export starts to push poultry meat prices down
The broiler price remains the same this week, but according to insiders in the market, the choice is not controversial. Due to lower Polish prices, more poultry meat is being imported from Poland. Although prices remain the same on paper, traders indicate that actual trading prices are lower.
The Barneveld broiler price remains stable for the fourth consecutive week, at a level of €1.15 per kilogram.
Although the broiler price holds steady, the decision is controversial. Last week, the Polish price was already significantly below the Dutch price. In regions with the most expensive broilers, 5 zloty (at the current exchange rates €1.15) was settled, but the lowest prices were around 4.78 zloty (€1.10). Typically, such a situation leads to significant exports to the Northern European markets, and that is currently the case. It is heard in the market that imports from Poland have significantly increased. Currently, prices have somewhat converged with a range between 4.80 zloty (€1.11) and 4.92 zloty (€1.14).
Traders indicate that more broilers from Poland are entering the Dutch market. In practice, this depresses prices. Traders mention that there was already a significant discussion within the Barneveld pricing committee. The decision could go either way, either for an equal price or a slight decrease. Not all traders agree on the chosen course. Opponents point to the Belgian ABC price, as this price usually runs approximately parallel to the Dutch price, although this price is displayed including VAT. In Belgium, the price dropped by one cent, from €1.19 to €1.18.
Market
In the slaughterhouse prices, the decline is not immediately visible. The slaughter price of Esbro remains the same at €1.06. Export slaughterhouse Clazing also maintains the same slaughter price at €1.15. However, traders mention that the price remains the same mainly on paper. In practice, mark-ups have decreased, as surcharges are lower and the room for negotiation has largely disappeared.
Not only the supply contributes to lower prices. According to insiders in the market, the demand is also slightly weaker than before. This mainly concerns domestic demand. Additionally, the unfavorable weather plays a role. Due to the cold and wet weather, there is less barbecuing. This clearly affects the predominantly weak meat markets. The demand from international markets for European poultry meat is still higher than usual. Currently, the contract price for broilers in Brazil is 7.22 real (€1.31). This still leads to favorable exports from the Northern European market. However, competition from Eastern Europe is growing.
Ukraine export limited
Furthermore, the European Union has set a new limit for Ukrainian poultry meat imports. Effectively, Brussels establishes a new quota of 137,000 tons of poultry meat per year. Originally, the European Union had a quota of 90,000 tons of poultry meat per year. Due to the war in Ukraine, the EU decided to suspend all trade restrictions, but now the situation of free trade is coming to an end.
