Analysis Chicken & Poultry

Broiler price rises along with Polish price

May 16, 2024 - Matthijs Bremer

The broiler price has risen again after the significant decline of the past weeks. Especially higher Polish prices ensure that the price level in Western Europe is also increasing. Meanwhile, the supply remains scarce on the world market, and German turkey production is growing.

The broiler price has slightly increased again after considerable price pressure. In week 17, broilers were traded for €1.15 per kilo. Until week 19, the price decreased. At the lowest point, the Barneveld index was at €1.12. However, in week 20, the price increased by 1 cent to €1.13.

Demand and supply remain stable in the Netherlands. The demand for chicken is reasonably strong now that the May holidays are over. This means there are more consumers in the Netherlands again. Better weather also led to extra demand for barbecue meat. Although chicken is not the most popular barbecue meat, this category also benefits. This has a significant impact on the price, as the demand for chicken meat was already quite strong.

In addition, there is little poultry meat imported from Eastern Europe. The price of poultry meat has mainly been determined in recent weeks by exports from Poland. Low Polish prices put considerable pressure on the North European prices. At the lowest point, prices in the country ranged between 4.70 zloty (at current exchange rates €1.10) and 4.90 zloty (€1.15). Prices have now risen again to 5.10 zloty and 5.40 zloty (€1.20) and (€1.27) due to the increase in exports.

In addition, the supply remains scarce on the world market, as floods in Brazil are putting pressure on the country's production. The state of Rio Grande do Sul, which is affected, has a relatively large poultry population. Besides drowning, problems with feed supply have disrupted the chain. This has a significant impact on the Brazilian poultry meat sector. A total of 11% of all Brazilian broilers are kept in the area. In the third quarter of 2023, 182.6 million chickens were slaughtered in the state.

German production continues to grow
Furthermore, poultry meat production in Germany continues to grow. In the first quarter, chicken meat production increased by 2.2% to 386,340 tons, according to data from the German statistical office Destatis. This is largely due to an increase in slaughter weight. The slaughter rate increased by only 0.1% to 169.2 million pieces of poultry meat. The rising slaughter weight is a result of the decreased feed price.  

It is noteworthy that the production of turkey meat in Germany is increasing, especially. In the first quarter, turkey production increased by 7% to 105,425 tons, while the number of slaughters increased by 3.5% to 7.63 million turkeys. The number of broiler slaughters increased by 0.6% to 152.9 million broilers. Meat production increased by 0.9% to 276,730 tons.  

Matthijs Bremer

Matthijs Bremer is a market specialist in pork, beef, and poultry meat at DCA Market Intelligence. He also monitors the protein transition, keeping an eye on developments in cultured meat and meat substitutes.
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