Northern European poultry prices continue to fall

Northern European poultry prices have fallen again this week, continuing a trend driven by a relatively weak market.Slowly but surely, average EU chicken prices have declined considerably. In week 15, prices peaked at €296.02 per kg. By week 17, they had dropped to €288.74.Meanwhile, Northern European poultry prices are falling much faster. The main reason for lower poultry prices remains an oversupply of broilers. Market sources indicate that demand for chicken is good; however, there is significant competition, particularly in the conventional segment. This competition is not only domestic—exports from Poland remain strong. In addition, price pressure from earlier substantial Brazilian exports continues to weigh on chicken prices in Northern Europe.The fact that prices are not declining more rapidly is due to solid demand. A large share of the additional supply is quickly absorbed, as consumers continue to purchase large amounts of chicken. Chicken remains popular, partly due to its strong health image, while high beef prices also continue to support chicken consumption.VCN quotation declines further The VCN quotation fell by a further 2 cents in week 18, bringing the average chicken slaughter price down to €1.05 per kg.Meanwhile, in week 19, the Barneveld quotation remained unchanged. The week before, a price decline of 3 cents was steeper than the average VCN slaughter price. At €1.07 per kg, the price is now only 2 cents above the VCN level. At the beginning of spring, the difference between the two quotations was still 9 cents in favour of the free Barneveld quotation.