Poultry meat market picking up again

Poultry meat prices are picking up again after a relatively slow start to January, with momentum building in mid-February. Demand is strengthening, prompting slaughterhouses to purchase more chickens on the open market alongside their regular contract volumes, while meat prices remain stable. This aligns with seasonal expectations of stronger demand in spring. Since the clear drop in mid-January, the average European poultry meat price has risen significantly again, according to data from Eurostat. The price is back above €290. In week 6, the price was €292.86 per 100 kg. Up to and including week 6, the carcass price in Belgium (the most representative benchmark of the European Union in Northern Europe, as the Netherlands does not report its prices) remains fairly stable around the level of €240. Meanwhile, the declarations from Poland remain very volatile. In week 5, the declaration was €177.66 per 100 kg and in week 6, the poultry meat price was €191.04. This shows that the demand for Polish chicken meat fluctuates somewhat, causing export prices to strongly move with demand. This no longer puts as much pressure on the prices that the Northern European sector can ask for their poultry meat. As the market begins to prepare for spring, during which the consumption of chicken is generally somewhat stronger than in the previous weeks, it is expected that the prices in the coming weeks will align more with the declarations from week 6 than with those from week 5. Poultry market tightens In the Dutch slaughter prices, the stronger demand is not yet visible. The Dutch slaughter prices for poultry remain stable this week, as indicated by the latest quotation from the VCN-ex. The price remains at €1.10 per kg. On the other hand, there is already a higher price on the open market. The price of freely traded broilers has increased somewhat. In week 7, the price rose by 2 cents to €1.18 per kg. As we often see, the lower supply is mainly noticeable in Belgium. That market is relatively volatile compared to the Dutch and German market, causing shifts in supply and demand to be felt there the fastest. This results in an increase in the Deinze quotation to €1.22 per kg. The increase in these somewhat more volatile markets is a signal that the market in Northern Europe is beginning to tighten, as the increase means that there is more competition over the chickens on the open market. The rise fits into a regular market pattern where prices on the open market for chickens tend to increase as spring approaches. The reason for this is that the slaughterhouses are already preparing for the rising demand expected from February onwards. Additionally, avian influenza across Northern Europe is causing the supply to be somewhat lower. Adding to this is that supply is being hindered by the virus, leading to increased pressure, especially on freely traded chickens.