Global poultry production should expand in 2022, unlike other proteins, but it will be affected by higher costs for labor and inputs, according to a report by Rabobank.
Production in the U.S. is expected to rise by 2.4% on improvement in chicken prices and continued strong demand.
“Despite expectations for modest production growth, we expect prices to remain above historic averages,” the report reads. “Our outlook not only reflects this strength in demand, but also lower supplies of competing proteins, chicken’s relative value, and tight inventories of chicken in cold storage.”
The report noted labor and other challenges but said, “Strong pricing is helping offset higher operational costs. At current price projections, producers are expected to remain profitable through 2022.”
Globally, trade in chicken should be up, but with some volatility due to the pandemic. Thailand, a major exporter of processed chicken products, has been hit hard by COVID-related labor shortages; Vietnam and other countries are filling that gap, the report says.
