Rabobank’s latest global poultry quarterly report, for the second quarter of 2024, says the outlook for global poultry markets in 2024 was “moderately positive” with demand expected to recover gradually.
The bank noted that feed costs had decreased this year by an average of 15% to 25% compared to 2023. Global commodity prices appeared to have reached their lowest point, primarily due to concerns about geopolitics, trade issues and weather, such as the changes resulting from the El Niño phenomenon.
Rabobank said the biggest potential threat to the global poultry market was vulnerable trade routes.
“Potential distribution challenges are the biggest wild card for the outlook due to geopolitical tensions in the Black Sea region, attacks in the Red Sea, and drought affecting water levels in the Panama Canal. Given increasing rerouting via southern routes, these challenges could impact global trade, with rising costs, delayed supply, and constrained container availability.
“Trade flows to and from Europe, Asia, the Middle East, and Africa are especially vulnerable to changes. This could increase focus on regional trade, where possible, or otherwise lead to higher costs and potentially delayed supply, especially for goods primarily produced in a single region,” the report said.
