Poland: bird flu and Covid-19 push broiler prices to new heights

The average wholesale price of poultry in Poland has jumped by 33% over the past year, reaching PLN 3.99 per kg ($1.02 ), the highest level since 2014, according to a study by PKO BP. The average price of turkey MEAT rose by 40%, reaching its highest ever price of PLN 6.50 per kg (usd 1.67).

At the retail level, the price rally is even stronger. The Polish Ministry of Agriculture estimates that the average price of chicken has reached PLN 6.64 ($1.7) per kg, up 56% from the same date last year. PKO BP predicted that prices could rise by another 20-25% in the second half of 2021. The main reasons for this trend are the rising cost of feed, the low dynamics of chicken slaughter in the EU and the ongoing avian influenza epidemic. Despite rising prices, the profitability of Polish poultry farmers has reportedly declined over the past year.

Recession in chick supply

“Avian influenza outbreaks in reproductive flocks could exacerbate the decline in chick supply in the second quarter of this year. The end of the pandemic, helped by the mass vaccination against covid-19, means a resumption of demand for meat in the HoReCa sector, which could trigger a rise in prices,” PKO BP said.

355 bird flu outbreaks

Between November 2020 and June 2021, 355 influenza outbreaks were reported in Poland. According to the bank PKO BP, the epidemic affected farms with 13.9 million birds, including 1.9 million turkeys. The last outbreak was registered at the end of June in the Mazowieckie Voivodeship on a non-profit farm with 106 birds.

"Poland is the largest exporter of poultry meat to the EU."

Polish exports of poultry meat fell

Polish poultry meat exports fell by 2.3% (11.9% in value terms) in the first half of 2021. Poland is the largest exporter of poultry meat in the EU, and foreign sales have traditionally formed the backbone of the country's poultry industry. Declining demand is forcing companies to cut EXPORT prices, analysts explained.

The weak performance of exports is primarily due to Brexit, as sales to the UK fell by 14% compared to the same period last year. However, other countries have also reduced imports. For example, sales to Germany decreased by 13% and to the Czech Republic by 17% compared to the first quarter of 2020. In almost all cases, the decline is due to a decline in demand for poultry in export markets, where sales are suffering due to weak performance in the HoReCa segment due to restrictions related to the CORONAVIRUS.

And this fact will be taken into account when preparing the monthly analytical report Meatinfo.ru