Chicken consumption is flying high: It’s predicted to increase to 2.5% to 3% in 2024, putting it at historical levels.
Poultry market at a glance. Thanks to the increase in consumption, the market is looking bullish. Due to the rising cost of competing proteins, poultry products are looking pretty appealing in the current economy.
Globally, things are going well thanks to lower production costs and solid demand in *most* markets. The exceptions? China and Japan, due to local oversupply. Despite this, trade is expected to stay high through the end of the year. This is big news after a few slow years for the industry. Europe is expecting an increase in poultry production of 3-4%, where imports were up 3% in the first half of 2024. Globally, the market forecast is continual growth—but earmarked with volatility.
Concerns. Geopolitical turmoil in the Middle East means trades have been rerouted to South Africa, increasing transportation time and cost between Asia and Europe. Disease still remains a prevalent concern, especially after a recent outbreak of Newcastle disease on a farm in Rio Grande do Sul, Brazil, which caused major export bans. No further cases have been reported, but the incident has sent up warning flags of concern for Brazil and other trading partners.
Avian influenza is also still a concern, especially in the U.S. With winter on the horizon, an increase in outbreaks is expected in the Northern Hemisphere.
Soundbite “Poultry’s strong price position against other proteins in most markets, along with strong retail demand, recovering foodservice demand, and rising sustainability strategies that support chicken demand are supporting rapid growth.” — Nan-Dirk Mulder, senior analyst for animal protein at RaboResearch
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Congress to EPA: What’s Your BEEF with Meat Packers?
The Environmental Protection Agency (EPA) is considering new regulations that take aim at meat and poultry processors.
And some members of Congress have a BEEF with the EPA’s proposals.
The proposed rules: In late January, the EPA released the details of its proposed “Clean Water Effluent Limitations Guidelines and Standards for the Meat and Poultry Products Point source category.”
Huh?
Basically, the EPA formally published its proposals to combat wastewater contaminants that come from slaughterhouses.
Okay… that makes more sense.
At the heart of the rules proposal is a concern from environmental groups about nitrogen and phosphorus pollutants that originate from slaughterhouses. In some cases, the wastewater goes directly into waterways. In other cases, the water goes to municipal wastewater treatment facilities.
But not everyone is on board with the EPA’s suggestions…
Congress responds: Last week, two U.S. representatives—Eric Burlison (MO) and Ron Estes (KS)—pushed back against the EPA and introduced the “Banning EPA’s Encroachment of Facilities (BEEF) Act.” If passed and signed by President Biden, the law would prohibit the EPA from finalizing, implementing, or enforcing the rule.
According to the lawmakers, the proposed rules place undue burden on small processors—costs that can be absorbed by larger companies.
Soundbite: “The… proposed regulation isn’t just an attack on family-run small businesses, it’s an attack on rural communities,” said Burlison. “These meat and poultry processors are the lifeblood of our communities. The BEEF Act… lets these hardworking Americans do what they do best, produce safe, affordable food for our families.”
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