The European Union supports campaigns that promote high quality agricultural products.

According to the latest quarterly report of Rabobank[1], published at the end of June 2018, the global poultry market is still characterized by volatility, with increased production and export on local markets.

Brazil, which is the largest producer and exporter of poultry meat in the world, is suffering the consequences of import restrictions imposed by some countries in connection with last year’s report of the detection of un-fresh meat, past its sell-by date, being exported from the country. The removal of 20 firms from the list of Brazilian entities authorized to export to the European Union market strongly influenced the global trade of chicken breast meat, as EU countries are the main receivers of this item. On the other hand, this spring Brazil was struggling with a massive strike of carriers, necessitating the liquidation of millions of poultry which could not be transported for slaughter.

Another significant event weakening the poultry market in Brazil was the imposition by the Chinese authorities of anti-dumping duties on Brazilian poultry, which will significantly affect the volume of poultry exports from Brazil to China.

The global poultry trade is also affected by changes in the requirements for ritual slaughter and stunning by Saudi Arabia. The consequences could be observed in the first quarter of 2018, when Saudi Arabia reduced imports of poultry by 30%. It is worth mentioning that this country is the main recipient of poultry carcasses from Brazil.

In the current quarter, additional turbulence has been caused by tension in the trade relations between China and the US, as well as the introduction of high tariffs by the Chinese government on poultry from the US, which further hindered the prospects for an opening of the Chinese market for US poultry meat. In addition, China announced the imposition of duties on US soybeans, which may also have a significant impact on global trade, not only of this resource, but also on poultry prices. Feed prices are expected to rise in China; moreover, the country is likely to begin importing significant quantities of soya from Brazil, which in turn will increase feed prices in this country, whose poultry market has recently been significantly affected by other events.

These events resulted in a 3% decline in poultry production in Brazil and as much as a 10% decline in exports compared to the same period in 2017. This situation in turn offers an opportunity for other increasingly significant players in the global market to increase exports. One of them is the European Union, which is the third largest poultry exporter in the world.[2]For consumers of European poultry, it is not without significance that in addition to safety, recipients can be assured of the quality of poultry meat, e.g. through the use of additional, voluntary quality systems, such as QAFP (Quality Assurance for Food Products). The QAFP system is a guarantee of outstanding poultry quality.

What is particularly important is that European consumers choosing poultry with the quality label of QAFP have a guarantee that at all stages of production, additional procedures have been implemented to comply with the requirements of the system, guaranteeing high, consistent quality of the final product.

[1] The entire article is based on the Rabobank publication: Rabobank Global Poultry Quarterly Q3 2018

[2] EU Market Situation for Poultry, Committee for the Common Organisation of Agricultural Markets, 30 August 2018