Opportunities and constraints of the European poultrymeat sector

Jan Wolleswinkel, Chairman

Dutch Poultryfarmers Organisation

Broilersector is dynamic

• Production costs

• Global trade

• Volatility of the feedmarket

• Modern society

• Future constraints

Production cost broilers

farm level EU in 2007 (euro/kg LW)

0

10

20

30

40

50

60

70

80

90

100

NL G FR UK PL

eu

roc

en

t p

er

kg

liv

e w

eig

ht

chick feed energy other labour housing general manure

75,9 77,8 79,4

85,6

75,4

Source:LEI

Production cost broiler at farm level in 2007 (eurocent / kg LW)

-10

0

10

20

30

40

50

60

70

80

90

NL US TH BR

cen

t p

er

kg

liv

e w

eig

ht

chick feed energy other labour housing general manure

51,7

66,2

51,1

75,9

Source:LEI

Price of Basic Ingredients 2008 - 2011

50

100

150

200

250

300

350

Jan 08 April Juil Oct Jan 09 April Juil Oct Jan 10 April Juil Oct Jan-11 April Juil

Euro

/ to

nne

Soft Wheat (EU)

Barley (EU)

Maïs (EU)

Soja (CAF)

Hulls (EU)

Manioc (CAF)

C.G.F. (CAF)

Source:European Commission

Price development of Compound feed for Broilers, a Broiler Cereal-Feedmix and Broiler price

0

50

100

150

200

250

300

350

| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 |

Eu

ro

/ T

(fe

ed

)

Eu

ro

/ 1

00

kg

(B

ro

ile

r)

margin broiler/ comp feed (2.7)Cereal-mixCompound feedBroilerAvg. Margin 2001 - 2010

NB: June. - Dec. estimations Broilerprice: June - Dec. forecast

Source:European Commission

Global Trade

• EU produces for the freshmarket• Import third countries mainly for processed

products• Exportmarket for leg sections and wings• But EU production does not equal to

consumption (not in quality but in quantity)

Broilermeat: Brazil, USA, Thailand

Source:PVE/gira

Constraints of the modern society

• Animal welfare • Food safety

– Reduce of antibiotics, antibiotics resistance – Residues– Reduction of Salmonella, Campylobacter

• Environmental demands• Spatial planning • Sustainability in general

• Significant decreasing trend in human cases, 2005-2009• 21.3% decrease compared to 2008• Decrease supposed to be mainly due to successful control of Salmonella in laying hens, breeding flocks and eggs

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2005 2006 2007 2008 2009

Co

nfi

rme

d ca

ses

pe

r 10

0,0

00

po

pu

latio

n

Human salmonellosis in EU, 2005-2009

Source:EFSA

• 2009 was the first year of implementation of the control programmes for Salmonella in broiler flocks.

• In total 18 MSs and two non-MSs met the target.

Salmonella reduction target in broiler flocks, 2009

Source:EFSA

Animal welfare

• 2007: Directive adopted welfare broilers• Creates max. stocking density’s/m2

• Highest stocking density:– Monitoring of the welfare indicator “mortality”– Good Farming Practices

• Implemented June 2010

Future constraints

• Development cost-price EU farmers• International policy and differing European

production standards for eggs and poultrymeat compared to third-country imports:– Influence WTO/Mercosur negotiations – Production costs in EU higher

• Differences between memberstates in the development of social demands

Most important constrain

• Consumer confidence

– Home market

– Export markets

Thanks for your attention