A surge in European broiler meat exports is to go into reverse this year, thanks to tightened Russian import quotas, a turnaround which will - notably in the UK - help put an end to a period of strong growth in poultry production.
Broiler shipments from the European Union, the third-ranked exporter after Brazil and the US, will drop by more than 5% in 2011 to 940,000 tonnes, US Department of Agriculture staff said.
The expected decline would be the first for five years, and come in sharp contrast to the 7.3% jump in shipments to a "buoyant", and record, 992,000 tonnes in 2010.
However, prospects for shipments to Russia, a major importer, appear significantly worse than last year, when the country sought extra EU supplies to replace US ones banned over a dispute over sanitary treatment of meat.
Russia has tightened the imports that it will permit, under tariff-rate quotas, to 350,000 tonnes.
Less protein
Nor will European producers be able to replace demand on the domestic market, with consumers' taste for chicken slowing in the region, despite the meat's relative cheapness compared with beef, lamb or pork.
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Broiler output by top EU producers, 2011 and (year-on-year change)
Production: 9.19m tonnes, (+1.0%)
Imports: 675,000 tonnes, (unchanged0
Exports: 940,000 tonnes, (-5.2%)
Domestic consumption: 9.86m tonnes, (+0.9%)
Source: USDA attache report |
"Poultry meat consumption growth - around 1% - is less than the demographic one, showing that, per capita, consumption is probably slightly decreasing," the USDA attaches said in a report.
"Several market analyses showed that, while the average consumer switched from beef or pork meat to poultry meat, the lower income consumers simply reduced their protein purchases."
Furthermore, a trend of consumers switching to cheaper cuts from more expensive parts was expected to continue this year.
Country forecasts
The market pressure will feed through into a rise of a little under 1%, to 9.19m tonnes, in EU poultry meat production in 2011, following a four-year spell when output has grown by an average of more than 4%.
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Forecast broiler meat output, 2011 and (year-on-year change)
UK: 1.33m tonnes, (+0.2%)
Benelux: 1.21m tonnes, (+1.7%)
Spain: 1.18m tonnes, (+2.9%)
France: 980,000 tonnes, (+1.8%)
Poland: 920,000 tonnes, (+4.5%)
Source: USDA attache report |
The slowdown was expected to be particularly strong in the UK, the EU's top producing nation, which would see near-zero growth, following an 8% jump in output in 2010.
Output in Spain is expected to rise by 2.9%, in line with last year's result, with that in France seen increasing by 1.8%.