STATISTICAL REFERENCE FOR POULTRY EXECUTIVES - THE 2012 - WATTAGNET
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2012 www.WATTAgNet.net The Statistical Reference for Poultry Executives ➥ Forecasts, analysis, charts and tables give you the full picture, with additional data available for download.
2012 www.WATTAgNet.net Introduction to the Executive Guide.............6 WATT Executive Guide to World Poultry Trends offers an improved way to access additional data online. High feed costs impact poultry meat, egg production worldwide...........................8 High input costs may limit market growth in developed countries. Global poultry and egg market projections ...................................................12 Poultry and egg consumption, production changes as population grows over the next decade. Developing countries fuel poultry meat production growth ......................................18 Population increases, rising costs lead to trade growth in poultry and egg products. China remains world’s top egg producer in 2012...........................................................24 More than half of world’s total egg production Poultry meat and egg trade in international markets .................................28 High feed costs limit growth in many countries. World’s top poultry, egg companies ...........32 Consolidation continues to be seen in two top chicken markets. Egg consumption growth driven by developing countries ..................................38 Table egg consumption increases due to population growth, increased uptake of egg products. Cover photo: ©Mark Hryciw I Dreamstime.com 2 executive guide 2012
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➥www.WATTAgNet.com Upcoming webinars Mycotoxin Strategies for the 2012 Corn Harvest Stay on the pulse of world poultry trends with the latest news, In light of the US drought and its impact on corn, speakers will discuss quality findings and possible videos, blogs, data and more at www.WATTAgNet.com. effects to livestock and poultry. Sponsored by Biomin and Romer Labs. Exciting new Market Data offerings October 23, 9 a.m. CDT WATTAgNet.com has expanded its Market Data pages to include the Learn more and register at: most up-to-date statistics and information on the global poultry and www.WATTAgNet.com/Upcoming_webinars.aspx egg markets. To access this exclusive content, you must register and login to www.WATTAgNet.com. ➥Once logged in, visit the Executive Guide page, www.WATTAgNet. Salmonella Protocols: How are you protecting your com/MarketData/ExecutiveGuide, to view charts of industry trends reputation and your business? Learn why developing a sound salmonella and forecasts and download data as spreadsheets. reduction protocol will help protect your reputation and your business. Sponsored by Merck. October 25, 10 a.m. CDT. Learn more and register at: www.WATTAgNet.com/Upcoming_webinars.aspx Gangrenous Dermatitis: The inside out theory Learn about evidence of an “inside out” origin for Gangrenous dermatitis from Dr. G. Donald Ritter, director of health services for Mountaire Farms Inc. Sponsored by Diamond V. October 31, 10 a.m. CDT ➥The Poultry Market Data page, www.WATTAgNet.com/MarketData/ Learn more and register at: Poultry, compiles the latest statistics from U.S. Department of www.WATTAgNet.com/Upcoming_webinars.aspx Agriculture reports and displays them in an easy-to-see chart format that makes it easy to assess the current market situation. Corporate Headquarters Publisher, International: Greg Watt gwatt@wattnet.net Publisher, N. America: Steve Akins sakins@wattnet.net Director of Content: Bruce Plantz bplantz@wattnet.net Editorial Office Editor: Alyssa Conway aconway@wattnet.net Consulting Editor: Peter Best peter.best01@btconnect.com Copy Desk Team ➥The Market Data Top Companies page at www.WATTAgNet.com/ Managing Content Editor: Tara Leitner MarketData/TopCompanies allows you to search for information on tleitner@wattnet.net Associate Editor: Alyssa Conway the world’s top players in the poultry, feed and pig industries using aconway@wattnet.net WATT’s exclusive Top Companies database. Art/Production Team Art Director: Tess Stukenberg tstukenberg@wattnet.net Social Media Production Manager: Jim Riedl jriedl@wattnet.net Administrative Staff www.facebook.com/WATTAgNet www.twitter.com/wattpoultry Chairman/CEO: James W. Watt President/COO: Gregory A. Watt www.youtube.com/user/ 4 executive guide 2012
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WATT Executive Guide to World Poultry Trends INTRO offers improved way to access additional data online To access the datasets, please sign in or sign up on www.WATTAgNet.com. Once logged in, you’ll be able to visit the Market Data section to access links to each dataset and download it in a spreadsheet format. Click on a tab in the Market Data section of WattAgNet to access a list of downloadable datasets and view charts. W elcome to the latest edition of the To access these datasets, WATT Executive Guide to World Poultry Trends. This resource is designed to help you stay up-to-date on the major aspects of the poultry and egg industries worldwide. Executive Guide Covering production, trade, consumption Below the chart, click on and more for the global poultry meat and — www.WATTAgNet. “Download Excel file for more egg industries, the Executive Guide offers a com/marketdata/executiveguide — to data” to download the dataset unique source of data compiled in one place. ! ! to your computer. You must Accompanying each report within the guide, ! ! ! ! be registered and logged in to you will find charts on data and trends relating ! download the datasets. to sectors, countries and world regions. " !! # $ New for this year, we are pleased to offer % ! & an expanded Market Data section of www. The Executive Guide We have great pleasure in presenting the WATTAgNet.com, which has dedicated ! ! WATT Executive Guide to World Poultry areas for all the downloadable datasets for ! ! Trends for 2012-13. We are confident that the guide, additional poultry data and Top !' ' it will be a valuable tool for your business Companies data. ( ' )* throughout the coming year. EG 6 executive guide 2012
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SECTION ONE High feed costs impact poultry meat, STATUS egg production worldwide High input costs may limit market growth More data available in Market Data section of WATTAgNet in developed coun- Sign in or sign up as a user on www.WATTAgNet.com to download these datasets as spreadsheets. tries. In 2012, global meat production is projected to ➥World poultry meat production trend 1995-2012 – expand by nearly 2 percent www.wattagnet.com/154342.html to 302 million metric tons, ➥Largest egg producing countries in 2010 – according to estimates from www.wattagnet.com/154312.html the Food and Agriculture Organization of the United ➥World meat market production and trade estimates 2010- Nations. This growth 12 – www.wattagnet.com/154424.html will be driven by gains in ➥EU egg imports by product 2011-2012 – pig meat production and www.wattagnet.com/154421.html poultry production, which for the first time in history ➥Population growth rates by world region to 2021 – exceeded 100 million metric www.wattagnet.com/154466.html tons, reaching a record 101.6 million metric tons in 2011, according to FAO (Figure 1). Overall, the meat market’s India is expected to reach a record 3.2 million metric tons in growth will depend on feed prices and animal diseases. Much 2012 thanks to vertical integration among producers and an growth will come from developing countries in 2012, while expanding middle-class population, according to estimates developed countries may see a second year of lower output from the Foreign Agricultural Service/U.S. Department of and profitability with stagnating domestic meat consumption, Agriculture. However, with a record seven Asian countries high input costs and competition from developing countries. reporting outbreaks of Avian influenza in February 2012, production growth in this region will depend on these poultry Poultry meat production and consumption health concerns for the remainder of the year. Global poultry production is expected to increase 1.8 Global broiler meat production growth will remain percent by the end of 2012 to a projected 103.5 million metric suppressed and profitability will be a concern for producers tons (Table 1). Much of the growth in poultry production also facing high feed prices and trade disputes. Projections will come from Asia, specifically, China, India, Japan, the completed in April 2012 by the Foreign Agricultural Service/ Republic of Korea and Turkey. Production of broiler meat in USDA for broiler meat production in Brazil, the United States FIGURE 1: WORLD POULTRY MEAT PRODUCTION TREND 19952012 120,000 100,000 poultry meat production (kt) 80,000 60,000 40,000 20,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 year 8 executive guide 2012
TABLE 1: WORLD MEAT MARKET PRODUCTION AND TRADE ESTIMATES 2010 2011 estimate 2012 forecast Change: 2012 over 2011 WORLD BALANCE Production (million metric tons) % Total meat production 294.6 297.2 302 1.6 Bovine meat 67.5 67.5 67.5 - Poultry meat 98.2 101.6 103.5 1.8 Pig meat 109.9 109 111.7 2.6 Ovine meat 13.5 13.5 13.6 0.9 Trade 26.6 28.5 29.2 2.4 Bovine meat 7.7 7.8 8.1 4 Poultry meat 11.6 12.6 13 3.1 Pig meat 6.2 7.1 7 -0.7 Ovine meat 0.8 0.7 0.7 1.4 SUPPLY AND DEMAND INDICATORS Per capita food consumption (kg per year) World 42.5 42.3 42.5 0.5 Developed 79.2 78.9 78.4 -0.5 Developing 32.4 32.3 32.8 1.5 FAO MEAT PRICE INDEX 2010 2011 2012 (January-April) % change (January-April 2012 over (2002-2004=100) January-April 2011) 152 157 179 3.3 Source: FAO Food Outlook May 2012 executive guide 2012 9
SECTION ONE FIGURE 2: EVOLUTION OF EGG PRICES IN THE EU Rising domestic demand with an STATUS increasing population will continue 185 to raise imports in Africa, notably in Egypt, a country also hit by the spread of Avian influenza outbreaks in early 165 2012, as well as in Angola, Benin and Ghana, where regional dependency on 145 imports is currently estimated at 24 euro/100kg percent of domestic consumption, up from 18 percent in 2009. 125 Changes in egg production in the EU 105 The year 2012 also brought about changes in the egg market as a result of 85 the EU Animal Welfare Directive banning 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 conventional battery cages. On January week 1, a 12-year transitional period expired requiring that EU member states be fully Avg 07-11 2009 2010 Avg 2011 cage only 2011 2012 compliant with the directive. As a result, European egg prices spiked after the January 1 deadline and China were all lowered from 2012 when it joins, but progressively (Figure 2). This was partially attributed earlier projections to 13.3 million tons, decline with increased domestic to a shortage of eggs as producers 16.4 million tons and 13.7 million tons, production. EU poultry meat imports switched from using conventional respectively. Globally, broiler meat will also slow as the industry conforms cages, as well as increased costs of production was revised downward by to the EU Animal Welfare Directive production in alternative housing 881,000 from previous forecasts to banning the use of conventional battery (Figure 3). Not only did the EU see a 82.2 million tons. cages in 2012. spike in shell egg prices, but the price Despite trade disputes, poultry Moreover, world meat consumption of eggs in the breaking market also meat trade is still forecast to rise continues to grow at one of the increased to nearly double what is by 3 percent to 13 million metric highest rates compared to other major normal. EU egg prices have since been tons in 2012. World poultry import agricultural commodities, in spite of steadying slightly and decreasing, said growth will be led by countries in the United Nations projections that world Herman Versteijlen, director agricultural Middle East, Southeast Asia and Latin population growth will slow to an markets for the European Commission. America, according to FAO. After a average of 1.02 percent per year over Prices of eggs in China, the world’s World Trade Organization-induced the next decade. Africa will experience largest producer, have also been on the increase in the poultry tariff-rate quota, the fastest population growth at more rise this year due to decreased output Russia’s poultry meat imports are than 2 percent per year, more than caused by weather and rising costs of feed expected to pick up slightly again in double any other region (Table 2). ingredients, among other factors. The TABLE 2: POPULATION GROWTH RATES BY WORLD REGION Average annual growth rate % Number of additional people (millions) 2002-11 2012-21 2012-2021 World 1.17 1.02 678 Africa 2.38 2.29 233 Latin America and Caribbean 1.19 0.97 55 North America 0.92 0.82 27 Europe 0.19 0.11 7 Asia and Pacific 1.14 0.91 345 China 0.52 0.3 43 India 1.46 1.2 160 Oceania Developed 1.56 1.16 3 Source: OECD-FAO Agricultural Outlook 2012-2021, UN World Population Prospects 10 executive guide 2012
FIGURE 3: EU EGG PRICE 20062012 2002 to nearly 25 percent in 2011. Egg exports set records in 200 2006 2007 2008 2009 2010 2011 2012 the US 180 In the U.S., exports for table eggs and 160 egg products set new records for volume 140 and value in the first four months of 2012, 120 according to Jim Sumner, president, euro/100kg USA Poultry & Egg Export Council, 100 which follows a record-setting 2011. 80 An estimated 275 million dozen eggs 60 were exported from the U.S. in 2011, 30 40 percent more than the 10-year average for annual U.S. exports. Hong Kong remains 20 the largest market for U.S. egg exports, 0 followed by Canada. Sumner said further Jan/06 Jan/07 Jan/08 Jan/09 Jan/10 Jan/11 Jan/12 opportunities for growth in the U.S. egg year export market exist in the EU, where U.S. eggs can serve as a replacement for eggs lost during the transition from average price of whole eggs in China rose and fourth quarters of 2012, given price conventional cages. Another potential by 7.3 percent on August 11 from July 21, increases in agricultural products and fuel, market of growth for U.S. eggs is India, which is also fueling inflation concerns China Merchants Securities estimates. where domestic production will be unable in that country, where the consumer price In Australia, consumer demand for to keep up with consumption as the index hit a 30-month low in July. Inflation free-range eggs as opposed to cage eggs population grows at a projected annual is expected to remain at 1.9 percent and has picked up, where the market share growth rate of 1.2 percent from 2012 to 2.5 percent, respectively, in the third has increased from about 8 percent in 2021. EG Managing Perfection Improve the quality of your hatching eggs Complete Solutions in Poultry Equipment executive guide 2012 11
SECTION 2 Global poultry and egg market projections FORECAST Poultry and egg consumption, production changes as population grows over the next decade. FIGURE 2: POPULATION GROWTH TO 2050 IN DEVELOPED AND DEVELOPING COUNTRIES I n the year 2021, world poultry 10 meat production is projected to World population 2050 9.5 billion reach 127.2 million metric tons. 8 Although the world’s population population in billions World population 2010 Rest of world growth rate is expected to slow to just 6.8 billion 5.3 billion 1.02 percent per year over the next 6 decade (Figure 1), nearly 680 million additional people will need food, fiber 4 India and fuel by 2021. 1.8 billion China 2 World population 1.4 billion growth slows Developed In 2030, the world will 0 countries have an estimated 8.3 billion 1800 1850 1900 1950 2000 2050 1 billion people, and in 2050, the world will be home to 9.3 billion Source: United Nations Population Reference Bureau (from “The Challenge of our Times: Why Feeding the World will Require Finding the Optimal Combination people. This means that a of Natural and Human Resources,” by Carl Hausmann, managing director, Bunge Ltd.) 70 percent increase in food production will be necessary between now and 2050 in order to keep up with the growing of the United Nations and the Organisation for Economic global population, according to a presentation given by Carl Co-operation and Development based the projections on a Hausmann, managing director at Bunge Ltd. series of assumptions. Some of these assumptions included In preparing the latest “Agricultural Outlook” publication the eventual containment of the sovereign debt and banking- on global projections for the agriculture and food sectors from sector problems in the Euro zone that are currently slowing 2012 through 2021, the Food and Agriculture Organization economic growth, as well as high energy and oil prices. The nominal crude oil price is FIGURE 1: POPULATION GROWTH RATE PERCENTAGES BY expected to be higher than in the WORLD REGION past on account of higher crop costs, increasing at an average Middle Africa annual growth rate of 2.9 2.5 East percent, from $111 per barrel in Developing 2011 to $142 per barrel in 2021. 2.0 Latin countries The greatest population America average annual percent Asia growth will be in developing 1.5 World United States countries (Figure 2). Developing countries will contain about 1.0 Developed 6.9 billion people by 2030, and countries will account for 85 percent of 0.5 Former Soviet the global population in 2050. Union Thus, these countries will make 0.0 up much of the demand growth 1991-2000 2001-2010 2010-2021 for poultry meat and eggs during -0.5 that time. 12 executive guide 2012
Among OECD countries, Turkey is expected to have the FIGURE 4: WORLD MEAT MARKET SHARES IN 2021 highest growth rate over the next 10 years, at more than 4 percent per year. Brazil, Russia, India and China are all Production by type of meat expected to continue growing over the next ten years at about 8 percent per year. Egg consumption on the rise in developing Sheep 16 (x 1 million metric tons) Poultry 127 countries (x 1 million metric tons) Projections from FAO suggest that global egg consumption will rise from 6.5 kg per person per year in 1997/99 to 8.9 kg per person per year in 2030 in developing countries. In industrial countries, egg consumption is projected to rise from 13.5 kg per person per year in 1997/99 to 13.8 kg per person Pork 126 per year in 2030. Beef/veal 77 (x 1 million metric tons) More than 67 percent of demand for eggs by 2015 will (x 1 million metric tons) come from Asia, according to Professor Hans-Wilhelm Windhorst. In China, where egg consumption is more than double the average for developing countries, a rise in Source: OECD-FAO Agricultural Outlook 2021 consumption from 15 kg per person per year in 1997/99 to 20 kg per person per year in 2030 is likely based on FAO data. Additional data from FAO suggest that the world’s production of eggs TABLE 1: WORLD MEAT PRODUCTION PROJECTION TO 2021 will reach 70.4 million metric tons in World region % growth 2015 and 89.9 million metric tons in Meat type 2009-11 2021 Amount increase 2012-2021 2030, at a growth rate of 1.6 percent per year from 2015 through 2030. Of Poultry meat (Kt) Developed 40,595 47,438 6,843 1.36 this global total, developing countries Developing 58,075 79,763 21,688 2.75 will produce 50.7 million metric tons Pork (Kt) Developed 41,417 45,189 3,772 0.73 of eggs in 2015 and 69 million metric Developing 67,214 81,053 13,839 1.73 tons of eggs in 2030. Beef/veal (Kt) Developed 29,726 32,396 2,670 1.45 Developing 35,905 44,107 8,202 2.02 Shifts in the makeup of global meat markets Sheep meat (Kt) Developed 3,115 3,462 347 1.2 Globally, meat production is also Developing 9,996 12,397 2,401 1.97 expected to slow from previous All meats (Kt) Developed 114,853 128,485 13,632 4.74 growth rates over the next decade Developing 171,190 217,320 46,130 8.47 (Table 1). FAO projects world meet (Poultry meat is expressed as ready-to-cook equivalent weight, pork and beef/veal as carcass-weight equivalent) production will slow from an average Source: OECD-FAO Agricultural Outlook 2021 growth rate of 2.2 percent per year in FIGURE 3: PRODUCTION GROWTH BY MEAT TYPE 19952021 140 120 100 Pig meat Poultry meat Bovine meat (unit = Mt) 80 60 40 Sheep meat 20 0 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 year executive guide 2012 13
SECTION 2 FIGURE 5: INCREASE IN MEAT CONSUMPTION BY WORLD REGION FORECAST percent per year and 5 percent per year, BETWEEN 200911 AND 2021 respectively, over the last decade, are Other 4 % projected to average growth in the 2 percent per year range to 2021 (Figure Europe 6 % 3). In general, developing countries will North America account for 77 percent of additional 8% meat production growth during the period to 2021. Poultry production will continue to grow at the fastest rate (2.2 Africa 8 % percent per year) compared to other Asia and Pacific meats, and will have overtaken pig meat 56% by the end of 2021 with the highest production volume. By 2021, poultry meat production will likely reach more than 127 million metric tons, compared Latin America and to pig meat’s nearly 126 million metric Caribbean 18% tons (Figure 4). As with demand for eggs, much of Source: OECD-FAO Agricultural Outlook 2012-2021 the global consumption of meat will be !
More data available in Market Data section of WATTAgNet Sign in or sign up as a user on www.WATTAgNet.com to download these datasets as spreadsheets. ➥World meat production projection to 2021 www.wattagnet.com/154339.html ➥Poultry meat consumption forecasts to 2021 www.wattagnet.com/154316.html ➥World poultry meat projection to 2021 www.wattagnet.com/154344.html ➥USA poultry forecasts 2010-2013 www.wattagnet.com/154327.html ➥USA egg long-term projections to 2021 www.wattagnet.com/154320.html ➥Population and GDP projections to 2050 www.wattagnet.com/154463.html ➥Meat production projections by year to 2021 www.wattagnet.com/154412.html ➥Global egg production and growth projections 1997-2030 www.wattagnet.com/154404.html ➥Production growth by meat type 1995-2021 www.wattagnet.com/154415.html meat as 90 percent of their extra meat, except for in Eastern !! = !' ! Europe. Consumers’ purchases in developing countries, on the J*J) VVX = != > (! ?@J = !' YJQ )K =)Q !@ GRADING PAC K I N G PROCESSING 4OTAL 3OLUTION 0ROVIDER \ &2/- 5.'2!$%$ %''3 4/ &).)3(%$ 02/$5#43 \ -OBA IS A GLOBAL ORGANISATION THAT OFFERS TOTAL SOLUTIONS FOR MAKING EGG GRADING PACKING AND PROCESSING MORE EF½CIENT 4OTAL 3OLUTIONS FOR THE EGG INDUSTRY 7E HAVE ALL THE EXPERIENCE YOU NEED 6ISIT US AT %URO4IER (ANNOVER 'ERMANY (ALL BOOTH % N -ORE INFORMATIO 4(% 0!24.%2 &/2 02/&)4 3CAN THE 12 COD E OR WWWMOBANL NL AND VISIT WWWMOBA WWWMOBANL S BUTTON CLICK THE NEW executive guide 2012 15
SECTION 2 FORECAST While meat exports overall are FIGURE 6: WORLD POULTRY MEAT GROWTH RATE PROJECTIONS projected to rise by 19 percent by 2021 compared to 2009-11, led by 7.00 an expansion in poultry and beef Growth rate % 2002-2011 Growth rate % 2012-2021 shipments, annual trade growth overall 6.00 relative to earlier periods (Figure 5.00 6). Poultry trade, which grew at an growth rate % annual rate of 5.5 percent over the 4.00 last decade, will grow at a rate of less than 2 percent to 2021. The largest 3.00 contributors to poultry trade growth will be the U.S. and Brazil, which 2.00 will account for nearly 80 percent of world poultry trade expansion by 2021. 1.00 Import growth will also be led by 0.00 countries in the Middle East, Southeast Production Exports Imports Consumption Consumption Asia and Latin America. EG (Kt rtc) (Kt rtc) (Kt rtc) total (Kt rtc) per person (Kg rwt) Source: OECD-FAO Agricultural Outlook 2012-2021 YOUR PROFESSIONAL PARTNER FOR SUPERIOR POULTRY EQUIPMENT! SALMET has been manufacturing, since 1962, highly performing poultry equipment. The superior quality of the materials used, combined with legendary German precision and craftsmanship, creates a product that guarantees long lasting and reliable performance with minimum maintenance and low energy requirements. Prior to series production all SALMET products undergo extensive field tests of function, reliability and efficiency. SALMET is a well worldwide known manufacturer of: A "+'7/3-)'-+8,47*'>41* A '>+7(7++*+7)'-+8 )./)08'3*5:11+98 A 74/1+7)'-+8 A '>/3-)'-+8 A 19+73'9/;+3+898>89+28 A 425489/3-:3/98 A '3:7+*7>/3-9:33+18 #$39+73'9/43'12(88'7'(7/+18843#97'88+ ' /+9?+3(').+72'3>$+1
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SECTION 3 Developing countries fuel poultry meat MEAT PRODUCTION production growth High feed costs limit growth in many countries. D emand in rapidly growing developing TABLE 1: BROILER MEAT PRODUCTION AND CONSUMPTION BY COUNTRY countries will drive world meat 20082012 production to expand over the (x 1 million metric tons, ready-to-cook equivalent) next decade, led by poultry meat production growing at a rate of about 2 percent per year. Country Production 2008 2009 2010 2011 2012 (Oct.) 2012 (April) Nearly 104 million metric tons of poultry meat China 11.84 12.1 12.55 13.2 13.8 13.73 will be produced in 2012 after surpassing the 100-million-metric-ton mark for the first time Brazil 11.033 11.023 12.312 12.863 13.602 13.25 in history in 2011 (Figure 1). Of this total, global EU-27 8.594 8.756 9.202 9.42 9.63 9.6 broiler production will account for nearly 82 India 2.49 2.55 2.65 2.9 2.75 3.2 million metric tons, according to a recent U.S. Mexico 2.853 2.781 2.822 2.9 2.892 2.925 Department of Agriculture World Agricultural Supply and Demand Estimates report. Russia 1.68 2.06 2.31 2.575 2.75 2.725 Argentina 1.435 1.5 1.68 1.77 1.775 1.85 High input costs drive up Turkey 1.17 1.25 1.43 1.614 1.65 1.687 poultry meat prices Indonesia 1.35 1.409 1.465 1.515 1.54 1.54 Prices in the poultry meat market are expected to remain high, due to Thailand 1.17 1.2 1.28 1.35 1.42 1.42 = Others 12.687 13.003 13.465 13.619 14.662 13.865 prices for feed grains and energy. Total Foreign 56.302 57.632 61.166 63.726 66.471 65.792 Prices for all meats are currently at United States 16.561 15.935 16.563 16.694 16.603 16.401 their highest levels in the past 15 to 20 years. In fact, in April, the Food and Total 72.863 73.567 77.729 80.42 83.074 82.193 Agriculture Organization of the United Source: USDA-FAS http://www.fas.usda.gov/psdonline/circulars/livestock_poultry.pdf Nations’ meat price index rose to the FIGURE 1: WORLD MEAT PRODUCTION TREND 20002012 120.00 100.00 million metric tons 80.00 60.00 40.00 Pork Poultry Beef and veal 20.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 year 18 executive guide 2012
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SECTION 3 MEAT PRODUCTION FIGURE 2: GLOBAL BROILER PRICE INDEX VERSUS FEED highest level of 182 points, surpassing COST INDEX the record set in November 2011 when the index reached 181. Poultry meat 250% prices are projected to remain close to BROILER PRICE INDEX current levels, according to FAO, so 200% long as energy and feed costs remain high. Figure 2 illustrates the trend of rising broiler prices compared to 150% index rising feed prices in major broiler- producing countries. However, as 100% the industry adapts to higher costs, poultry producers should see their 50% Z US FEED COSTS INDEX on-farm productivity will also be important for gains over the next 0% decade. For example, the number of QI QII QIII QIV QI QII QIII QIV QI QII QIII QIV QI QII QIII QIV QI QII QIII QIV QI birds is projected to increase over the 2007 2008 2009 2010 2011 2012 next decade to 24.3 billion head, but an Feed EU US Brazil China Source: Bloomberg/EU/Rabobank less feed per bird will be required. The expansion in meat production over the next 10 years will be FIGURE 3: MEAT PRODUCTION INCREASE BETWEEN THE BASE largely due to production growth PERIOD 200911 AND 2021 in developing countries, while 70 growth slows in many developed meat production in million metric tons 6.84 0.35 countries. Between 2009-11 and 60 3.77 13.63 2021, developing countries will 50 2.40 2.67 account for 77 percent of the 40 21.69 growth in global meat production, compared to 23 percent from 30 developed countries (Figure 46.13 20 13.84 3). Developing countries are 10 expected to increase their share 8.20 of global poultry meat production 0 Beef Pork Poultry Sheep Beef Pork Poultry Sheep total to 63 percent by 2021 thanks to developing countries developed countries increases in productivity on farms and increasing returns to scale FIGURE 4: DEVELOPMENT OF WORLD POULTRY MEAT PRODUCTION 120.00 production (x 1 million metric tons) 100.00 80.00 60.00 40.00 20.00 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 year 20 executive guide 2012
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SECTION 3 FIGURE 5: BROILER FARM MODERNIZATION TREND IN with larger farms. MEAT PRODUCTION = CHINA [ =Z! =\= 100% ] ! ! ' 7% 6% 9% 12% 15% ! ' ( 90% 8% 11% !!^" V_= 15% 80% 15% ! 18% 25% 70% ' >$ 40% 60% # 39% ` { ! ' 50% 38% [ ! 40% J*)J= { 70% 64% 30% 35% [ !)QX 23% 20% J*)J= 18% ! | 10% 14% 7% 8% ! 0% 2000 2005 2010 estimate 2015 forecast 2020 forecast !! backyard farm (
TABLE 2: USA POULTRY PRODUCTION, DISAPPEARANCE, MARKET PRICES broiler meat in 2012. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Africa’s poultry meat Production, million lb production growth in Broilers 34,063 35,365 35,500 36,126 36,906 35,511 36,911 37,391 38,040 37,100 2012 has also been Turkeys 5,454 5,504 5,682 5,958 6,246 5,663 5,643 5,727 5,775 5,935 limited by the effects of Per capita disappearance, retail lb high feed costs and rising imports in such countries Broilers 84.4 85.8 86.5 85.4 83.5 79.6 82.2 84.5 84.3 80.5 as Ghana, Angola, Benin Turkeys 17.1 16.7 16.9 17.5 17.6 16.9 16.4 16.1 16.2 16.3 and the Congo. Market prices Russia’s poultry meat Broilers, 12 City, cents/lb 74.10 70.80 64.4 76.40 79.70 77.60 82.9 82-85 83-89 83-90 production growth, which Turkeys, Eastern, cents/lb 69.70 73.40 77.0 82.10 87.50 79.50 90.4 97-101 92-100 101-110 grew at an average of 14 Forecasts are in bold. percent annually over the Source: USDA World Agricultural Supply and Demand Estimates and Supporting Materials. last decade, according to FAO, is projected to vertical integration and modernization from about 1.8 million metric tons slow to an average of about 2 percent in China means more broilers will in 2011 to 1.9 million metric tons. a year over the coming decade to be produced on commercial farms Likewise in Mexico, broiler production 2021. Russia’s government will spend over the coming decade than in the growth will have slowed to just 0.9 more than $9 billion on domestic past and will account for the majority percent in 2012, Rabobank estimates, agriculture in 2013, including poultry (40 percent) of production by 2020. bringing total broiler meat production production. Since 2006, the country In comparison, the vast majority (70 in Mexico close to 2.93 million metric has either added or modernized more percent) of broilers were produced on tons in 2012. than 400 poultry facilities. By 2020, farms with less than 2,000 birds just In the U.S., falling chick placements Russia’s production of poultry meat is a decade ago in China. Furthermore, will lead broiler meat production expected to stand at 4.5 million metric India’s production of broiler meat growth to decline in 2012 by 1.8 tons, making the country almost self- is projected to increase from 2.9 percent. USDA forecasts the U.S., EG million metric tons in 2011 to a record the top producer, will have an output 3.2 million metric tons in 2012; an of nearly 16.4 million metric tons of expanding middle class will also fuel broiler meat in 2012, with growth demand in this country, and thus, slowed by high feed costs. This is greater production, also driven by the equivalent of approximately vertical integration. 38,040 million pounds of broiler meat produced in 2012, declining to nearly Production growth in Latin 37,100 million pounds of broiler America slows meat in 2013 (Table 2). Additionally, Overall, world poultry meat the U.S. will produce 5,775 million production growth will slow from an pounds of turkey meat in 2012. average of 2.2 percent per year the High feed costs and a contracting previous decade to 1.8 percent per year number of animal heads are also over the next decade, largely because affecting the European Union’s meat of slower growth in Latin America, production sector, which is expected according to FAO. Rabobank estimates to decline overall by 0.4 percent in that Brazil, one of the world’s largest 2012 and 1 percent in 2013. Poultry broiler-producing countries, will see meat, in contrast, remains the only broiler production growth slow to just meat in the EU for which production is 3 percent in 2012, while Argentina’s expected to increase in 2012 and 2013. broiler production grows at 4.5 percent The European Commission forecasts in 2012. As Table 1 from USDA an expansion in EU poultry meat shows, Brazil’s production forecast production by about 1 percent in 2012 was revised lower to approximately and 0.3 percent in 2013, in spite of 13.3 million metric tons of poultry new animal welfare rules. This fourth- meat in 2012, and Argentina’s largest producing region is expected production will increase only slightly to produce 9.6 million metric tons of executive guide 2012 23
SECTION 4 EGG PRODUCTION China remains world’s top egg producer in 2012 More than half of world’s ! !!JXK ! total egg production from J*))=! !! only five countries. ! V} ! % ! J*)J #' ' !! ! }} ! ^" J_ ! @V ! !JYQ TABLE 1: EU25/EU27 EGG PRODUCTION J*)) = !! Gross ! @} ~ J*)J!! =[ production = K* { !J ! x 1 million ! Year Region metric tons % change J*)J={ ! 2004 EU-25 6.875 { ! !QVJ 2005 EU-25 6.833 -0.6 Z ! ! J*J*!QK 2006 EU-25 6.534 -4.4 =" !! J*Q*= # $ % ! ! 2007 EU-25 6.521 -0.2 { ! "#! 2007 EU-27 6.957 ! X*V " [ = 2008 EU-27 7.067 1.6 J*)}!YKK % ! =Z! =\ 2009 EU-27 6.896 -2.4 J*Q*= ' !( ! 2010 EU-27 7.049 2.2 { ' ~ ! 2011 EU-27 7.112 0.9 !' ^" )_ [ = ! ! = % 2012 EU-27 7.04 -1 FIGURE 1: GLOBAL EGG PRODUCTION PROJECTION 19972030 100 90 80 production in million metric tons 70 1997/99 2015 2030 60 50 40 30 20 10 0 World Developing Developing Sub-Saharan Latin Near East/ South Asia East Asia East Asia Industrial Transition countries countries Africa America North Africa excluding countries countries excluding and the China China Caribbean Source: FAO (http://www.fao.org/docrep/005/y4252e/y4252e07.htm#Ch5) 24 executive guide 2012
FIGURE 2: CHINA ANNUAL EGG PRODUCTION TREND 19802012 30.00 tons) production(xx11 million metric tons 25.00 20.00 Looking for real results 15.00 in breeder or broiler production? eggproduction 10.00 Find out what your benefits are at www.jpe.org Egg 5.00 0.00 2000 01 02 03 04 05 06 07 08 09 10 11 12 Year Source: USDA Premium+® breeder nest FIGURE 3: US EGG LONGTERM PRODUCTION PROJECTION TO 2021 8.10 8.00 Up to 10% more hatching eggs egg production (billion dozen) 7.90 7.80 7.70 7.60 7.50 BroMaxx colony system 7.40 7.30 2010 11 12 13 14 15 16 17 18 19 20 21 Year Source: USDA Agricultural Projections to 2021 (http://www.ers.usda.gov/publications/oce-usda-agricultural-projections/oce121.aspx) Up to 2 flocks more per year fractionally higher than 2011’s 7.66 table eggs, an increase of less than 1 billion dozen eggs produced. In 2012, percent over 2011. While feed prices this second-largest egg producer is are expected to moderate, declines in For more information about our expected to produce 7.68 billion dozen egg prices and cut backs in the size of products and dealer addresses: eggs, while the most recent projection > ~ for 2013 egg production shows a slight from greater expansion. Production of Jansen Poultry Equipment drop to about 7.5 billion dozen fueled by hatching eggs in 2012 will also remain Harselaarseweg 32 higher feed costs (Figure 3). below levels in 2011 as broiler producers 3771 MB Barneveld The majority of eggs produced cut back on production. The Netherlands are table eggs for consumption; in As in many countries around the Tel: +31 (0)342-427000 2013, the U.S. is expected to produce world, the majority of U.S. table eggs, 95 info@jpe.org approximately 6.6 billion dozen percent, according to a study released by www.jpe.org executive guide 2012 25
SECTION 4 EGG PRODUCTION TABLE 2: INDIA EGG PRODUCTION AND PER CAPITA TABLE 3: NUMBER OF LAYER FARMS AND LAYERS IN AVAILABILITY JAPAN Human Number of Layer Average head Year Egg production population Per capita Farms Number of Layers per farm (March-Feb.) (million) (million) availability Year farms thousand head thousand head 2001-02 38,729 1,040 37 2003 4,340 137,299 31.6 2002-03 39,823 1,056 38 2004 4,090 137,216 33.5 2003-04 40,403 1,072 38 2005 - - - 2004-05 45,201 1,089 42 2006 3,610 136,894 38 2005-06 46,235 1,106 42 2007 3,460 142,765 41.3 2006-07 50,663 1,122 45 2008 3,300 142,523 43.2 2007-08 53,583 1,138 47 2009 3,110 139,910 45 2008-09 55,562 1,154 48 2010 - - - 2009-10 60,267 1,170 51 2011 2,930 137,352 46.9 2010-11 63,024 1,186 53 2012 2,810 135,477 48.2 2011-12 (est.) 65,480 Source: Ministry of Agriculture, Forestry and Fisheries, “Livestock Statistics” Source: State/UT Animal Husbandry Departments FIGURE 4: PERCENT CHANGE IN EU LAYING HEN The third-largest egg-producing country, India, produces nearly 2.86 POPULATION BETWEEN 2012Q1 AND 2011Q1 million metric tons of eggs annually, 2,000 according to the Associated Chambers of +10% +1% +9% +15% Commerce and Industry of India. Table number of laying hens (x 1,000) - 2 shows the trend of egg production -18% -2% -41% -14% in India and per capita availability of -2,000 -24% -7% eggs to the country’s population. Japan, -4,000 -10% the fourth largest producer, is thought -34% to have seen a drop in egg production -6,000 -15% J*))!J*)J= -8,000 layers and layer farms in that country ! ZJ*))=\!J=KQ* -10,000 -20% )QXV -12,000 However, this number will decrease France Poland Ireland Netherlands UK Czech R Hungary Austria Belgium Slovakia Lithuania Portugal Greece Spain Italy Germany Bulgaria Denmark Finland Sweden Slovenia Romania Latvia Estonia J*)J J=Y)* )Q}} ^Q_ Egg production is expected to grow in some other egg producing countries J*)J=` $ J*)J ! consecutive increase in egg production the United Egg Producers, are produced EU egg production falls with growth of 1.4 percent, an increase in layer houses with conventional With a smaller laying hen population YJ ' J*)) cage systems. In contrast, January 1 as producers invest in new cage systems ` $ Z ! marked the end of a 12-year transitional and convert production out of battery ! ` $ ! period banning the use of these popular cages, egg production in the EU is !@X)) ! $ conventional cage systems in another forecast to be about 1 percent lower in J*)J = major egg-producing region, the J*)J J*))= X*V Russia has seen its egg production increase European Union. Figure 4 illustrates the metric tons (Table 1). The region’s J**Y= QY) change in laying hens in the EU between largest egg producers remain France and { !V)K J*))! Spain, followed by Italy, Germany, the J*)J= ! J*)J Netherlands and the UK. Agriculture Nikolai Fyodorov. EG 26 executive guide 2012
More data available in Market Data section of WATTAgNet Sign in or sign up as a user on www.WATTAgNet.com to download these datasets as spreadsheets. ➥Global egg production and growth projections 1997-2030– www.wattagnet.com/154404.html ➥European Union number of laying hens by country 2000-2011 – www.wattagnet.com/54433.html ➥Largest egg producing countries in 2010 – www.wattagnet.com/154312.html ➥USA egg long-term projections to 2021 – www.wattagnet.com/154320.html ➥EU egg balance sheet 2004-2012 – www.wattagnet.com/154395.html ➥China annual egg production trend 1980-2012 – www.wattagnet.com/154401.html ➥India egg production and per capita availability 1990-2012 – www.wattagnet.com/154407.html ➥USA poultry forecasts 2010-2013 – www.wattagnet.com/154327.html Escent® Af l o r i n ® N ovi b a c ® N ovyr a t e ® N ovi o r o ® Lu m a n c e ® Mycotoxin Risk Assessment Wet Litter Natural Pigmentation Salmonella Control Liver Support Intestinal Health www.innovadglobal.com executive guide 2012 27
SECTION 5 Poultry meat and egg trade in TRADE international markets Population increases, rising FIGURE 1: GLOBAL TRADE OF SHELL EGGS AND EGG costs lead to trade growth in PRODUCTS poultry and egg products. 2,500,000 A growing population and demand growth in the market for livestock products, especially in developing 2,000,000 Egg products: CAGR: +6.6% metric tons countries, has led to rapid trade growth in poultry and egg products. 1,500,000 Changes in the trade of egg 1,000,000 products In the global market for eggs, shell Shell eggs: CAGR +5.5% eggs have historically been the most 500,000 commonly traded form of eggs (Figure 1); however, the market for eggs is ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 expected to shift over the next decade on Rabobank projections that egg year industry consolidation will continue egg products shell eggs and increasing globalization will occur Source: Nan-Dirk Mulder/Rabobank in the egg processing and egg products industries. TABLE 1: EU EXPORTS OF EGGS TO MAIN One country expected to see growth in its egg processing sector over TRADING PARTNERS the coming years is India. Figure 2 shows the country’s relatively low egg Total egg exports (except hatching) in production costs compared to the EU and some Asian countries, making product weight (metric tons) it a potential growing exporter over the next decade. India’s dried egg Country 2011 2010 products are already well accepted in Europe, but are only produced by a Switzerland 36,600 39,070 few companies, so the country shows much potential for expansion in the Angola 17,496 10,414 global export market. %( J*)J=Q) Japan 8,785 6,401 @K) ! $% ( United Arab Emirates 7,905 5,600 J*)J QV !VK@ ! $='! VQX Oman 2,792 2,600 ( % J*)J Argentina 1,695 1,678 Kong, followed by Canada, United Arab Emirates, the Bahamas and USA 1,661 4,118 Angola. Exports to Japan, an important market for the U.S. and typically Albania 1,303 4,118 ( ! ! =! ! J*)JJ} J)Y ' = % Israel 1,112 991 conventional cages has increased egg production costs in that region, Norway 878 196 J*)J~)Q! ! ( Russia 604 652 % J*)J= %~JX ! Ukraine 567 709 )J* ! % ! ! India 468 925 J*))='! J@X = QY Croatia 380 395 U.S. total exports globally, according to the United States Department of Agriculture’s Foreign Agricultural Service. Libya 226 201 ZJ*)Q=( ! ! % ( ! Source: European Commission (! ' J@@ ! $ J*)Q= 28 executive guide 2012
More data available in Market Data section of WATTAgNet Sign in or sign up as a user on www.WATTAgNet.com to download these datasets as spreadsheets. ➥EU egg balance sheet 2004-2012 – www.wattagnet.com/154395.html ➥USA poultry forecasts 2010-2013 – www.wattagnet.com/154327.html ➥USA broiler export trend 2005-2011 – www.wattagnet.com/154427.html ➥EU egg imports by product 2011-2012 – www.wattagnet.com/154421.html ➥Poultry meat trade long-term projections to 2021 – www.wattagnet.com/154324.html ➥World meat market production and trade estimates 2010-12 – www.wattagnet.com/154424.html ➥World meat export trends 1999-2021 – www.wattagnet.com/154336.html products by the end of 2012; most recent data available show TABLE 2: EU EGG IMPORTS BY PRODUCT IN 2011 (February 2011-January 2012) the region’s 2011 dried whole egg import volume totaled Volume 10,559 metric tons in eggs equivalent (Table 2). metric tons Egg Product egg equivalent metric tons product Poultry meat trade driven by demand from Asian countries Shell eggs imports 1,686 1,686 In the international market for poultry meat, a total of Liquid/frozen whites 956 824 7.126 million metric tons will be imported in 2012 by major Liquid/frozen whole eggs 280 242 importing countries and that number is projected to grow Dried whole eggs 10,559 2,336 over the next decade by 1.5 million metric tons (21 percent), Dried egg yolk 3,220 1,309 according to the latest agricultural projections from USDA. Major importers are expected to trade 8.634 million metric Frozen/liquid yolk 51 44 tons of poultry meat by 2021. Dried whites 3,025 353 Russia, historically the largest world importer of poultry Total metric tons 19,777 6,794 meat, will see its import volume decline from an estimated Source: International Egg Commission, “The European egg market situation,” Herman 374,000 metric tons, ready-to-cook, of poultry meat in 2012, Versteijlen, director agricultural markets, European Commission to 254,000 metric tons in 2013, which will decline further which is slightly higher than the forecast for 2012. Growth in the U.S. egg export FIGURE 2: PRODUCTION COST OF EGGS BY COUNTRY market will be driven by strong demand from growing Asian countries, notably 90 Hong Kong, Japan and Korea. EU-27 member states exported 111,121 metric 80 tons of eggs in 2011, 83,543 metric 70 tons of which are for consumption. 60 Switzerland was the top destination of (EUR ct/kg) main trading partners for EU-27 eggs, 50 as that country imported 36,600 metric 40 tons of eggs in 2011, 29,939 metric tons of which were eggs for consumption 30 (Table 1). 20 Of the 6,788 metric tons of eggs imported by EU-27 member states, 10 1,799 metric tons were eggs for 0 consumption. The EU region will again EU US Brazil Ukraine India country import the greatest amount of dried Source: Nan-Dirk Mulder/Rabobank whole eggs compared to other egg executive guide 2012 29
SECTION 5 TRADE FIGURE 3: 2013 POULTRY MEAT IMPORT PROJECTION to reach eventually an estimated Middle East 1,600 114,000 metric tons in 2021 (Figure 3). Poultry meat imports in the Other Middle East now account for more 1,400 than 40 percent of imports by major poultry meat imports (thousand metric tons, rtc) importers and is expected to increase Saudi Arabia 1,200 to more than 50 percent by 2021. The European Union largest single-country importer is Other SubSaharan Africa 1,000 now Saudi Arabia, which will import Mexico Japan an estimated 880,000 metric tons of Central America/Caribbean poultry meat in 2012 and 926,000 in West African Community 800 2013. Japan, the world’s second largest poultry meat importer, will import an 600 Hong Kong estimated 805,000 metric tons in 2012, China declining to 800,000 metric tons in North Africa South Korea 400 Russia 2013. The third largest poultry meat Other Europe Canada importer in 2012, the EU, will import 200 nearly 800,000 metric tons in 2012 but is expected to take over as the 0 second largest importer in 2013 at an Importers estimated 808,000 metric tons. Mexico Source: USDA Agricultural Projections to 2021 (http://www.usda.gov/oce/commodity/archive_projections/USDAAgriculturalProjections2021.pdf) is also becoming one of the world’s largest importers of poultry meat. The country’s import volume is projected to rise from 760,000 metric tons in 2011 to 789,000 metric tons in 2012 and 804,000 metric tons in 2013. Total exports of poultry meat in FIGURE 4: 2013 POULTRY EXPORT PROJECTION 2012 by major traders will total an IN MILLION METRIC TONS, RTC estimated 9.163 million metric tons, based off USDA forecasts, and are European Union projected to rise to 11.067 million 1,279 metric tons over the next decade to 2021. Brazil Brazil, the world’s largest exporter, 3,620 will ship approximately 3.555 million metric tons of poultry meat in 2012 and 3.620 million metric tons in 2013. The U.S., a close second, is estimated to export 3.413 million metric tons in 2012 and 3.442 million metric tons in 2013 (Figure 4). Over the coming years, the U.S. market share may increase thanks to trade with Saudi Arabia, Japan and Hong United Kong, where the compound average States growth rate is growing faster than in 3,442 Brazil, according to Adrian Westerstrate, global co-head of Rabobank’s Animal Protein Sector. Concurrently, though, U.S. exports have grown slower than Brazil’s in China, Japan and Kuwait. For China example, U.S. exports of broiler meat Thailand 442 have remained steady, as the country 509 exported 6.9 billion pounds of broiler 30 executive guide 2012
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