Poultry Outlook 2011

An Expert's View about Animal Husbandry and Support Services in Italy

Last updated: 11 Jul 2011

Italy is the sixth largest poultry producer in the EU-27, with approximately 10 percent of total EU production. Following good supply and demand performances in MY 2010, the Italian broiler market is expected to level off in MY 2011.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 6/21/2011 GAIN Report Number: IT1124 Italy Post: Rome Poultry Outlook 2011 Report Categories: Poultry and Products Approved By: James Dever Prepared By: Stefano Baldi Report Highlights: Italy is the sixth largest poultry producer in the EU-27, with approximately 10 percent of total EU production. Following good supply and demand performances in MY 2010, the Italian broiler market is expected to level off in MY 2011. The turkey industry does not expect significant production and consumption changes in MY 2011 after both production and consumption declined in 2010. Other species* 13% Turkey 23% General Information: Italy is the sixth largest poultry producer in the EU-27, with approximately 10 percent of total EU production. Domestically, poultry production, mainly broiler meat, ranks behind beef and pork production in terms of volume and importance. Even so, the poultry industry is very efficient and vertically integrated and has been doing very well despite the negative effects of the economic crisis and the Bird flu epidemic. Most of the farms raising broilers and turkeys are located in the Northern regions of Italy (Veneto, Emilia-Romagna, Lombardia and Piemonte). Italian poultry meat production by species (2010) Broiler 64% *laying hens, goose, guinea-fowl, etc. Source: UNA. BROILER Broiler meat Production, Supply and Demand (?000 MT) 2010 2011 2012 Bro Marketing year begin: Marketing year begin: Marketing year begin: iler 01/2010 01/2011 01/2012 Current post data Current post data Current post data Beginning stocks 0 0 0 Production 780 787 790 Intra EU imports 42 48 50 Extra EU imports 2 3 3 Total imports 44 51 53 Total supply 824 838 843 Intra EU exports 67 70 72 Extra EU exports 33 40 42 Total exports 100 110 114 Human Dom.Consumption 724 728 729 Other use, losses 0 0 0 Total domestic consumption 724 728 729 Ending stocks 0 0 0 Total distribution 824 838 843 Production According to first projections, the Italian broiler market is expected to level off in MY 2011 with a slight production and consumption increase (around 1 percent). MY 2010 can be recorded as the ?broiler year? due to good production and export performances compared to other meat products such as beef and pork. Both domestic production and exports increased by 5 percent and 51 percent respectively. Better performances are largely due to an increase in domestic demand due to the relatively lower prices for broiler meat compared to other kinds of meat. Beef and pork producers either increased or kept prices stable over MY 2010 in order to protect margins from declining domestic demand, while broiler producers and retailers lowered prices to pull in consumers. However, this strategy made broiler prices decline to a minimum level of 0.8 ?/kg which, combined with the increase in input costs (mainly feed), severely threatened producers? margins. Farmers are still quite concerned about the feed price trend in coming months although prices have been gradually recovered since the beginning of the year. Italian broiler meat cost and price index trend (2000=100) 900,000 14.0 Per-capita consumption (kg) 800,000 Production (MT) 12.0 Consumption (MT) 700,000 10.0 130 600,000 Cost index Price Index 120 8.0 50 ,000 110 40 ,000 6.0 100 3 ,000 4.0 2900 ,000 2.0 10 ,000 80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: ISMEA. Consumption 0 0.0 Total Italian meat consumption has been significantly restrained by the negative effects of the economic crisis. However, broiler demand has increased in the last three years due to lower prices which made consumers shift their preferences. Per capita consumption increased in 2010 to 11.93 kg reaching a record high, excluding the 2001 level (12.21 kg) when the first BSE case was discovered in Italy. A recent survey states that the four main reasons affecting Italian consumer purchasing choice for meat are: innovation, freshness, functionality and, of course, price. Approximately 78 percent of Italian households generally purchase broiler meat and 14.4 percent of them purchase it once a week. The industry assesses broiler meat consumption by type of cut: 64%?legs and legs and breasts, 21%?processed products (stuffed chicken, sausages, and hot dogs), and 15%?whole birds. Italian Broiler meat Production and Consumption Trends Source: UNA. Trade Italy is more-or-less self-sufficient in broiler meat trade, and the small amount of trade is largely intra-EU trade. However, Italian broiler producers have recently started to explore new extra-EU markets exporting increasing quantities to Hong Kong and Vietnam. Italian broiler meat exports by country (?000 MT) 2009 2010 Jan-Mar 2010 Jan-Mar 2011 EU-27 44.3 66.7 18.1 14.1 Greece 15.3 18.9 4.6 3.8 Germany 10.3 13.2 2.9 3.3 France 3.8 6.5 2.1 1.1 United Kingdom 2.7 6.3 2.2 0.8 Austria 2.5 3.9 0.9 1.1 Netherlands 1.8 3.1 0.8 0.6 Spain 1.6 2.8 0.5 0.4 Slovenia 1.9 2.6 0.6 0.6 Extra EU-27 21.5 32.9 6.4 10.4 Benin 8.5 9.2 1.8 1.6 Albania 4.7 4.7 1.1 1.2 World 65.8 99.6 24.5 24.5 Source: Istat. TURKEY Broiler meat Production, Supply and Demand (?000 MT) 2010 2011 2012 Tu Marketing year begin: Marketing year begin: Marketing year begin: rkey 01/2010 01/2011 01/2012 Current post data Current post data Current post data Beginning stocks 0 0 0 Production 279 270 268 Intra EU imports 16 17 17 Extra EU imports 4 2 3 Total imports 20 19 20 Total supply 299 289 288 Intra EU exports 49 43 44 Extra EU exports 15 22 25 Total exports 64 65 69 Human Dom.Consumption 235 224 219 Other use, losses 0 0 0 Total domestic consumption 235 224 219 Ending stocks 0 0 0 Total distribution 299 289 288 Production The turkey industry does not expect significant production and consumption changes in MY 2011, despite domestic production will highly depend on feed prices in coming months. MY 2010 production decreased by 4.6 percent compared to the previous year. Consumption MY 2010 Italian turkey meat demand further declined by 5 percent with per capita consumption falling to 3.9 kg after the previous two years positive performances. According to a recent market survey, around 48 percent of Italian households usually purchase turkey meat and 6 percent of them purchase it once a week. About 79% of turkey meat is sold as ?selected pieces? (legs, breasts, etc.), 19% as processed products (such as stuffed or roasted turkey, sausages, wurstel and so on), and 2% as whole birds. ITALIAN POULTRY ASSOCIATION UNA (Unione Nazionale dell?Avicoltura) is the Italian poultry and egg producers association. They represent: breeding farms, hatcheries, poultry and layer farms, slaughterhouses, cutting and processing houses, packaging and eggs product processing. Contact info: Via V. Mariano 58 00189 Roma Tel: +39-06-3325-841 Fax: +39-06-3325-2427 Web: http://www.unionenazionaleavicoltura.it/engl.aspx Abbreviations and definitions used in this report HS codes for broiler meat: 020711 Chickens And Capons, Whole, Fresh Or Chilled 020712 Chickens And Capons, Whole, Frozen 020713 Chicken And Capon Cuts And Edible Offal, Fresh Or Chilled 020714 Chicken And Capon Cuts And Edible Offal, Frozen 160232 Chicken & Capon Meat & Meat Offal Prep Or Preserved Excluding Livers MT Metric ton = 1,000 kg MS EU member state(s) MY Marketing year: January/December
Posted: 11 July 2011, last updated 11 July 2011

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