The return of the U.S. in many global poultry markets is shaking up global trade streams, with other exporters starting to defend their market share via price concessions, according to Rabobank’s Global Poultry Quarterly Q2 report.
“This is affecting margins for companies highly exposed to trade, in countries like Brazil, Argentina, Thailand and Japan“, says Animal Protein Senior Analyst Nan-Dirk Mulder. “We believe this situation will continue, with expected supply shortages in Asia and Mexico offsetting some of the negative impacts of price concessions. Outside of these trade battles, market conditions are more favorable—in balanced markets, companies are receiving good margins.”