Poultry Quarterly Q4 2020: The challenge of balancing volatile markets

Moving through Q4 2020 and into 2021, the global poultry industry will operate in a volatile market context, with pressure coming from foodservice and wholesale markets. Possible new waves of Covid-19 will add to the market ups and downs, and the impact of a deep economic crisis will make markets more price-driven.

Report summary

“Over the whole year, we expect a slight increase in global poultry production, mostly as a result of poultry expansion in China and Vietnam, where African swine fever has reduced pork availability, and also from expansion in the US. The rest of the world will be operating in an environment of shrinking production,” according to Nan-Dirk Mulder, Senior Analyst – Animal Protein.

Global trade has become difficult, with most import markets reducing volumes. Trade into ASF-affected markets like China, the Philippines, and Vietnam has become more important, and this raises risks as local production recovers. Exporters like Brazil, the US, and Russia are focused on China, with export volumes expanding quickly, but with price concessions.

The key challenge for producers in such volatile markets is to balance supply and demand, and the experience so far this year shows how difficult this is.

  • Nan-Dirk Mulder

    Senior Analyst - Animal Protein
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  • Justin Sherrard

    Global Strategist - Animal Protein
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  • Matz Beuchel

    Data Analyst — Animal Protein
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  • Andrick Payen

    Analyst
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  • Angus Gidley-Baird

    Senior Analyst - Animal Protein
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  • Ben Santoso

    Senior Analyst - Animal Protein
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  • Beyhan de Jong

    Analyst – Animal Protein
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  • Blake Holgate

    Analyst - Animal Protein, Sustainability
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  • Christine McCracken

    Senior Analyst – Animal Protein
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  • Chenjun Pan

    Senior Analyst - Animal Protein
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  • Dennis Voznesenski

    Analyst - Grains & Oilseeds, Animal Protein
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  • Don Close

    Senior Analyst - Animal Protein
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  • Dustin Aherin

    Analyst - Animal Protein
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  • Eva Gocsik

    Analyst - Animal Protein
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  • Gorjan Nikolik

    Senior Analyst - Seafood
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  • Shiva Mudgil

    Analyst - Dairy
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  • Wagner Yanaguizawa

    Analyst - Animal Protein
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