Analysis Meat & Protein
Weak Polish supply benefits Dutch poultry meat
The broiler price remains stable for the fifth consecutive week. Insiders in the market report that the demand is still strong. Remarkably, the Better Life market is also doing well despite the school holidays. Furthermore, prices in Poland remain high due to a weak supply of broilers.
The broiler price is still unchanged. For the fifth week in a row, the price stands at €1.15 per kilogram.
While other meat markets have clearly declined, poultry meat prices remain stable. Insiders in the market mention that the demand, like in other meat markets, is slightly lower due to the holidays. However, unlike other markets, the lower demand is not enough to create price pressure. Additionally, the poultry meat market is less responsive to the boost from good barbecue weather compared to pork and beef.
Furthermore, insiders in the market explain that despite lower demand, the price is not decreasing due to the sector's contraction. The shift from conventional chicken to chicken with a Better Life label has led to a 25% decrease in Dutch poultry meat production, as calculated by Rabobank at the end of 2023. We are currently in the midst of this transition, and the market is beginning to feel the effects. The Dutch supply is significantly lower, so a lower Dutch demand at current prices does not lead to price decreases.
Better Life unusually strong
Insiders also mention that Better Life chicken continues to sell well. While conventional broilers are usually immediately purchased due to lower broiler supply, the number of Better Life broiler slaughters typically decreases in the summer. During the school holidays, the number of consumers in Northern Europe consistently drops by 5% due to vacations. This affects all meat markets, but the Better Life concept is more impacted in practice.
Although in Europe during the summer holidays there is mainly a trend towards the South, tourists also visit the Netherlands. However, these tourists tend to consume more meat in restaurants and less meat from supermarkets. This disproportionately affects the Better Life meat market, as restaurants mainly use conventional meat. This year, slaughter numbers remain steady, according to traders. Insiders in the market attribute the favorable outcome mostly to strong demand. This is partly because beef and pork (unlike last year) are priced significantly higher in supermarkets than chicken meat.
Export pressure remains low
There is also no pressure on broiler prices from abroad. Polish broiler prices are considerably higher than Dutch prices. In Poland, broilers are traded for 5.10 zloty (€1.19) to 5.66 zloty (€1.32) depending on the region. Market analysts in Poland attribute the high prices to a low broiler supply. The market expectation is that this situation will continue for a month or two. This is reflected in the relationship between current contract prices and free market prices, both included in the Polish quotation. On average, broilers are paid 5.78 zloty (€1.35) per kilogram on the free market. Meanwhile, average contract prices are 5.25 zloty (€1.22) per kilogram. This 13-cent difference clearly shows the challenges slaughterhouses face in sourcing broilers.
