chicken poultry

European poultry producers face a “bumpy” short-term future and should rethink their strategies amid financial volatility and competition on price from emerging markets, according to a new report by Rabobank.

Producers - despite a bullish outlook for the longer-term - would need to invest heavily or become niche players to withstand pressures such as volatile input prices, more price-conscious customers, concerns over animal welfare and new labelling rules and competition from producers from outside the EU, said senior analyst Nan Dirk-Mulder in a report called ‘Poultry in Motion’.

“The industry needs to acclimatise to a new market reality,” he warned. “This new reality requires a strategic repositioning of individual companies, and it will also require significant investments.”