EU Poultry Production and Exports to Grow Again

An Expert's View about Poultry in the Netherlands

Last updated: 27 Sep 2011

Driven by booming export and increasing domestic consumption, the EU-27 broiler meat production is foreseen to increase again in 2011 and 2012.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 9/1/2011 GAIN Report Number: FR9076 EU-27 Poultry and Products Annual EU-27 Poultry Production and Exports to Grow Again in 2011 and 2012 Approved By: Daryl A.Brehm Prepared By: FAS EU-27 Staff consolidated by Xavier Audran Report Highlights: Driven by booming export and increasing domestic consumption, the EU-27 broiler meat production is foreseen to increase again in 2011 and 2012. The hike in global grain prices directly impacted broiler production costs but EU-27 producers were able to pass most of the increase to their domestic customers, thus keeping their export price competitive. The EU-27 broiler trade surplus is expected to increase in 2011 in light of stable imports from Brazil and Thailand and surging exports, especially to the Middle East, South Africa, Hong Kong and China but lower shipments to Russia due to a lower broiler import TRQ. While all sources show that total meat consumption in the EU-27 has been negatively impacted by the economic recession, poultry meat, which is the cheapest source of animal protein, was less affected. EU-27 turkey production is expected to decrease in 2011 and 2012 due to decreasing exports and consumption. Executive Summary: Executive Summary Despite earlier fears that the impact of the global financial crisis could hurt EU-27 poultry production, it appears now that the EU poultry sector has continued to grow, benefiting both from growing domestic demand (which is less affected than other meats by the economic recession) and booming exports. The broiler meat production is foreseen to increase in all major EU producing countries. The hike in global grain prices since the summer of 2010 directly impacted broiler production costs but it appears that producers were able to pass most of the increase to their domestic customer, thus keeping their operational margins or only lowering them marginally and keeping their export price competitive. With EU-27 grain prices expected to remain high in 2011, no decline in broiler prices is foreseen for the coming months. The EU-27 broiler trade surplus is expected to increase in 2011 in light of stable imports (mainly due to the strength of the Real and the Baht) and surging exports. Brazil and Thailand remain the largest suppliers of broiler meat to the EU-27. EU-27 broiler imports from China (exclusively cooked and prepared broiler meat) are expected to grow again in 2011. In contrast to earlier pessimistic forecast, EU-27 broiler meat exports are now expected to increase by 10 percent in 2011, driven by booming exports to Hong Kong, Saudi Arabia and Sub-Sahara Africa more than compensating lower exports to Russia, Ukraine, Yemen and Viet-Nam. The dioxin incident in December 2010/ January 2011 in Germany did not significantly hurt EU-27 exports. EU-27 exports (of frozen cuts) to Hong Kong but also to mainland China are surging at a high pace. After a surge in 2010, mainly due to Russian restrictions on U.S. poultry meat, EU-27 broiler meat shipments to Russia will shrink in 2011 as Russia halved its broiler EU-27 TRQ to 350.000 MT. In 2012, EU exports are foreseen to slow as competitors are expanding production and high feed costs could hamper EU- 27 competitiveness. While all sources show that total meat consumption in the EU-27 has been negatively impacted by the economic recession, poultry meat, which is the cheapest source of animal protein, was less affected. However, its consumption growth (calculated by balance) is slower than the population increase, showing that per capita, consumption is slightly decreasing. In the EU-27, sales of cheaper broiler cuts also increased faster than sales of more expensive parts such as breasts or sales of whole birds. EU-27 turkey production is expected to decrease in 2011 and 2012, as declines in France, UK and Hungary are forecasted exceed gains in Poland and Spain. In many EU-27 countries, turkey production is not competitive compared to broilers. Turkey meat imports should remain stable in 2011 and 2012 under import quota control. French turkey exports to Africa are expected to remain stable as well as German and Dutch exports to Russia. Turkey meat consumption in the EU-27, overall, is expected to decrease in 2011 and 2012. In some countries such as France and UK, consumers continue to shift away from turkey to chicken which is perceived as tastier and more convenient to use. DISCLAIMER The PS&D numbers as reported are not official USDA numbers, but rather represent PS&D?s contributed by FAS EU-27 offices merged into a consolidated EU-27 PS&D. This report is the result of active collaboration with the following EU FAS colleagues in the member states: Xavier Audran from FAS Paris covering France Stefano Baldi from FAS Rome covering Italy Ornella Bettini from FAS Rome covering Greece Mila Boshnakova from FAS Sofia covering Bulgaria Monica Dobrescu from FAS Bucharest covering Romania Bob Flach from FAS The Hague covering the Benelux Diogo Machado from FAS Madrid covering Portugal and Spain Steve Knight from FAS London covering the United Kingdom and Ireland Roswitha Krautgartner from FAS Vienna covering Austria Sabine Lieberz from FAS Berlin covering Germany Jana Mikulasova from FAS Prague covering the Czech Republic and Slovak Republic Ferenc Nemes from FAS Budapest covering Hungary and Slovenia Yvan Polet from FAS Brussels / U.S. Mission to the EU for the Policy Section Piotr Rucinski from FAS Warsaw covering Poland, Estonia, Latvia and Lithuania Asa Wideback from FAS Stockholm covering Denmark, Finland and Sweden NOTE In this report the following HS codes are used: HS codes Broiler 020711 / 020712 / 020713 / 020714 / 1602.32 + imports of 02109939 from South America and Thailand only Turkey 020726 / 020727 /160231 / 020725 / 020724/ 020739 ABBREVIATIONS EU-27: All twenty-seven Member States of the European Union. Benelux: Belgium, the Netherlands and Luxembourg Weekly evolution of the Community price for Broiler Commodities: Poultry, Meat, Broiler 185 Production: Broiler Production (Top 5 EU-27 Member States) 1000MT 2009 2010 2011 United Kingdom 1327 1350 1350 Benelux 1206 1220 712257 Spain 1136 1193 1220 France 970 1010 1040 Poland 945 1040 1070 Despite earlier fears that the impact of the g1loba6l financia5l crisis could hurt EU-27 poultry production, it appears now that the EU poultry sector has continued to grow, benefiting both from growing domestic demand (which is less affected than other meats by the economic recession) and booming exports. The hike in global grain prices since the summer of 2010 impacted directly broiler production costs but it appears that producers were able to pass most of the increase to their customers, thus keeping their operational margins or only lowering them marginally. With EU-27 grain prices expected to remain high in 2011, no decline of broiler price can be foreseen for the coming months. 155 With no rebound in the EU-27 economic situation foreseen for 2012 and the continued strong domestic demand for poultry meat combined with strong export demand, the EU-27 broiler production is expected to grow again in 2012, albeit a slower growth. However, the short production cycle (a couple of months) of the poultry industry makes it very reactive to outside events, both upside and downside, making accurate forecasts more difficult. 145 135 1 4 7 10 13 16 19 22 25 28 31 34 37 4 43 46 49 52 Avg 06 - 10 2008 2009 2010 2011 (source Management Committee EU-27) ?ur o/ 10 0 k g The broiler meat production is foreseen to increase in all major EU producing countries, including UK, Benelux, Spain, France, Poland, Germany and Italy while some smaller producing countries such as Hungary and Czech Republic decrease their production. (Source FAS Posts) Overall, Benelux broiler production is expected to grow driven by the growing demand in the EU. During 2010 and first half year of 2011, prices of broilers in Benelux increased steadily and were above the five year average. Until the second half of 2010, feed prices were low, resulting in average to good profit margins. But during the last quarter of 2010, margins deteriorated due to the high feed and energy prices. During the whole year of 2010 costs were also high for manure disposal and chicks. Margins are expected to increase in 2011 as broiler prices rose further and feed prices stabilized. There is a lag time of high feed prices and the prices of compound feed. In the 1st quarter of 2011, poultry meat production in the Czech Republic amounted to 38,407 MT; it dropped by 12.0% in comparison to the 1st quarter of the previous year. A decline in animal production has been a very significant trend in the Czech Republic in the last decade and this also applies to poultry production. Broiler production is gradually decreasing and imports from Thailand and other Asian countries are replacing domestic supply. Danish broiler production is expected to remain relatively stable at last year?s high level. The high feed prices do have negative impacts on the economy for broiler producers but these effects are to some extent outweighed by relatively high prices on meat. The overcapacity of Danish poultry slaughterhouses gives broiler producers the freedom to choose between slaughterhouses and thereby negotiate better prices. They do also have the opportunity to sell their broilers to slaughterhouses in neighboring countries. Production growth (+ 4 percent on average in 2010 and 2011) in France continues to be driven by both growing domestic demand and booming exports. Production of ?free range? and ?red Label? high quality chickens declined in 2010 and may remain stable in 2011 as the production is more expensive for the consumers, and was hit by the economic recession. Producers and processors were able to pass most of their increased production costs (+ 30 percent for broiler feed cost in mid 2011 versus mid 2010) to their retailers and consumers. In Germany, the top four poultry processing companies continue expanding their slaughter capacity in a quest for higher market share. For 2011, a capacity increase of 160,000 MT is projected. the hike in production is also driven by two factors: First, the increase in domestic demand (because poultry meat is perceived as healthier) which is also fuelled by the success of the promotion of the D/D/D origin labeling (born/raised/slaughtered). This is an effective incentive for increased slaughter in Germany as opposed to imports from neighboring countries. Production of broilers in Hungary is excepted to slightly decline in 2011 and 2012, as production margins remained tight due to higher energy cost (+ 15 percent in the first quarter of 2011 compared to 2010) and feed costs (+7.1 percent) not fully compensated by higher producers? prices (+15.6 percent). Consumers price also stagnated, further compressing processors? margins. 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) after a record year in 2010 due to good domestic and export demands compared to other meat products such as beef and pork. The domestic demand was fuelled by the price strategy of the broiler producers and retailers who lowered prices to pull in consumers. However, this strategy made broiler price decline to a minimum level of 0.8 ?/kg which, combined with the input costs (mainly feed) surge, have severely threatened Italian producers? margins. Chicken meat production in Poland is expected to continue to grow in 2011 and 2012 in response to higher export demand and strong upward trend of domestic consumption. However, growing costs of feeds and declining farm-gate prices for chicken broilers are expected to slow the increase in 2011 in comparison to 2010. Figures for 2010 were significantly revised upward from previous estimates due to the surge in third country exports. In line with the previous expectations, broiler domestic production in Romania declined in 2010 by 5.6 percent and, based on the 4-month data available, the descending trend is expected to continue in 2011 although at a slower pace. Facing a decline in domestic demand, poultry companies intensified efforts in finding markets in other EU member states thus exports are forecasted to double in 2011 compared to 2009. The sector is expected to recover in 2012 and resume rising. The Swedish market for poultry meat is very strong and demand is increasing constantly. Prices are 10% higher in March 2011 than in 2010 but do not, however, outweigh the high feed costs. Production of broiler meat in Spain rose 2.2% in 2010 from the previous year. This increase is expected to accelerate to 5% in 2011 to then slow down in 2012. The smaller growth in 2010 is linked to the hot summer leading to lighter birds. Spanish broilers are generally slaughtered at 47 days. Birds are usually large (carcass weight: 1.5kg ? 1.9kg) to match the consumer demand for both whole birds and cuts. As in other European countries, rising feed costs impact production margins. Spain has low production densities because of the warmer weather which also reduces the competitiveness. There have been continuous technological developments in trying to reduce energy costs with fuel and biogas. The continued resurgence in broiler meat production in UK in 2011 is mainly due to increased domestic demand due to the economic situation which favors cheaper protein sources such as poultry meat. Consumption: Broiler Consumption (Top 5 EU-27 Member States) 1000MT 2010 2011 2012 United Kingdom 1617 1650 1650 Spain 1128 1143 1156 France 937 970 995 Germany 956 965 975 Italy 724 728 729 While all sources show that total meat consumption in the EU-27 has been negatively impacted by the economic recession, poultry meat, which is the cheapest source of animal protein, was less affected. However, its consumption growth (calculated by balance) is less than the population increase, showing that, per capita, consumption is slightly decreasing. Several market analyses showed that while, in general, consumers switched from beef or pork meat to poultry meat, the low income consumers reduced their protein purchases, switching to carbohydrate products (bread, pasta) with the exception of Spain, where pork meat was preferred over poultry meat. Tax hikes on food products implemented in 2010 in Hungary and Romania impacted negatively on poultry meat consumption (minus 17.5 percent n Romania in 2010). In the EU-27, sales of cheaper cuts also increased faster than sales of more expensive parts such as breasts or sales of whole birds. In the UK, retailers are reported to have significantly discounted cuts and parts. Such a trend is foreseen to extend into 2012 in the absence of any economic recovery. In several EU countries such as Germany, France and Poland, the switch to poultry meat is enhanced by the feeling that it is a healthier and leaner meat and more convenient to cook than beef or pork. It is also considered as easier to prepare for catering and restaurant than other meats. It is reported that, in Poland, the dioxin incident in Germany in December 2010/January 2011 combined with the promotion of processed poultry meat products which often look very similar to pork sausages but offer lower level of cholesterol or no fat content can lure consumers away from pork meat. The German domestic broiler meat consumption has also benefitted tremendously from the decision of the major German discount retail chains to sell fresh meat and convenience products in their stores. Data from Italy shows that approximately 78 percent of Italian households generally buy broiler meat and 14.4 percent of them purchase it once a week. 64 percent of the broiler consumption is sold in Italy as legs and breasts, 21 percent as processed products (such as stuffed chicken, sausages and wurstel) and 15 percent as whole birds. On the other hand, while overall in the Benelux, consumption of poultry meat shows a steady increasing trend, the Dutch consumption of broilers stagnated in 2010, while consumption of pork and beef slightly increased. This stagnation of Dutch consumption is possibly caused by rising prices for poultry and the media attention for the presence of resistant bacteria and dioxin. Trade: Broiler Extra EU-27 Imports (Top 5 EU-27 Member States) 1000MT 2010 2011 2012 Benelux 264 255 255 United Kingdom 177 175 175 Germany 105 105 105 Spain 33 34 35 France 27 20 20 Broiler Extra EU-27 Exports (Top 5 EU-27 Member States) 1000MT 2010 2011 2012 France 272 280 290 Benelux 265 275 280 Germany 96 100 105 Poland 75 80 80 United Kingdom 62 50 50 Extra EU-27 Imports ?000 MT 2006 2007 2008 2009 2010 2011* Quota reg. (EC) No 616/2007 (July- June MY) 020712 Frozen whole 8 21 17 17 14 10 020714 Frozen cuts 272 161 177 167 136 140 - 16023219 Preparations of chicken m 240 252 313 213 334 365 251 eat 02109939 Salted, or in brine 86 217 204 321 194 185 264 Total 606 652 712 715 677 700 - *Forecast (Source World Trade Atlas) Extra EU-27 Exports ?000 MT 2006 2007 2008 2009 2010 2011* 020711 Fresh Whole 5 6 6 5 5 5 020712 Frozen whole 187 217 267 274 302 330 020713 Fresh/chilled cuts 19 19 16 25 30 40 020714 Frozen cuts 453 363 421 448 622 690 0160232 Preparations of chicken meat 26 28 31 31 32 35 Total 690 628 737 778 986 1100 *Forecast (Source World Trade Atlas) Imports (Source World Trade Atlas) (Source World Trade Atlas) The EU-27 broiler trade surplus is expected to increase in 2011 in light of stable imports and surging exports. Brazil and Thailand remain the largest suppliers of broiler meat to the EU-27, followed by Chile and Argentina. Broiler imports are expected to stagnate because of the weakness of the Euro against the Real and Baht. Another reason is the change in the management of the Brazil import quota, the main supplier of broiler meat to the EU-27. It is estimated that less than 50,000 MT of broiler meat is imported outside the quota. Some EU-27 importers expects that, providing the EU-27 grants Thailand its AI-free status, Thailand will be able to export salted poultry meat again (it has a 90,000 MT quota). If the AI-free status is granted before the end of 2011, Imports from Thailand could grow to 40,000 MT in 2012. EU-27 broiler imports from China (exclusively cooked and prepared broiler meat) are expected to grow in 2011, the first 6 months period of 2011 showing a doubling in volume over the same period of 2010. The United States, which exported as much as 92,000 MT of broiler meat in 2005 to Romania and Bulgaria, is no longer a supplier to the EU-27 because the EU does not accept Pathogen Reduction Treatments. It has been reported that licenses for quotas of processed poultry meat are increasingly sought, with license prices increasing. With more companies applying, speculation seems to have entered this market. It highlights the fact that the EU demand for poultry is very strong, but that imports of processed poultry outside the quota are not profitable. There is a very limited volume of unprocessed poultry meat imported outside the quota. Some importers import unprocessed meat outside the quota to build an import volume with a company to be eligible to participate in the quota in the next year. EU poultry imports could also be impacted by the EU-27 stringent regulations for fresh poultry - frozen cannot be sold as fresh. Exports (Source World Trade Atlas) Contrary to earlier more pessimistic forecasts, EU-27 broiler meat exports are now expected to increase by 10 percent in 2011, driven by booming exports to Hong Kong, Saudi Arabia and Sub-Sahara Africa more than compensating lower exports to Russia, Ukraine, Yemen and Viet-Nam. The dioxin incident in December 2010/ January 2011 in Germany did not significantly hurt EU-27 exports. Dutch exporters also reported that good or stable economic situations in the traditional EU- 27 export markets also helped exporters keep export credit facilities from banks. The traditional French export markets of the Middle-East such as Saudi Arabia and United Arab Emirates are less impacted by the global economic recession and benefit from high oil prices, thus keeping a high internal demand, with the exception being Yemen where political instability is likely to hurt trade in 2011. The good economic situation of those countries also helped EU-27 exporters to raise their export prices of whole frozen chicken in line with their rising production costs (see chart below). (Source World Trade Atlas) EU-27 exports (of frozen cuts) to Hong Kong but also to mainland China are surging at a high pace (exports to China more than quadrupled in the first semester of 2011). Trade sources also reported that South Africa, traditionnaly supplied by imports from the U.S. and Brazil is to be a growing market for EU poultry with EU exports to this country growing tenfold between 2010 and 2011 (six months data). Export of low-priced cuts and mechanically deboned meat (MDM) to Sub-Sahara Africa increased remained brisk. After a surge in 2010, mainly due to Russian restrictions on U.S. poultry meat, EU-27 broiler meat shipments to Russia will shrink in 2011 as Russia halved its broiler EU-27 TRQ to 350.000 MT. Exports are also supported by increased supply. As in 2010, it is expected that the strong demand for breasts in the EU-27, will lead in 2011 to an elevated production of low-priced parts such as wings and legs, which are being exported mainly to Sub-Sahara Africa. In 2012, EU exports is foreseen to slowdown as competitors are expanding production and high feed costs could hamper EU- 27 competitiveness. Production, Supply and Demand Data Statistics: PSD Table Country: EU27 Commodity: Meat, Broiler (1000MT CWE) Year 2010 2011 2012 USDA Posts USDA Posts USDA Posts Official estimates Official estimates Official estimates [EU-27] [EU-27] [EU-27] [EU-27] [EU-27] [EU-27] Beginning Stocks Production 9095 9245 9185 9500 9630 Imports 676 677 675 700 710 TOTAL SUPPLY 9771 9922 9860 10200 10340 Exports 992 986 940 1100 1120 TOTAL Dom. Consumption 8779 8936 8920 9100 9220 Ending Stocks TOTAL DISTRIBUTION 9771 9922 9860 10200 10340 Source: EU FAS Offices 2010 production data were adjusted from previous estimates to reflect new/amended data from Benelux, France and Poland. Commodities: Poultry, Meat, Turkey Production: Turkey Production (Top 5 EU-27 member states) 1000MT 2010 2011 2012 Germany 483 475 475 France 391 380 370 Italy 279 270 268 Poland 240 250 260 United Kingdom 162 157 150 EU-27 turkey production is expected to decrease in 2011 and 2012, as declines in France, UK and Hungary are forecasted to be outweighed by gains in Poland and Spain. In France, turkey production is not competitive compared to broilers and processors have shut down several slaughterhouses for profitability reasons. In Germany, the steady production increase of recent years seems to have come to a halt. In the first four months of 2011, slaughter was 3 % below the same period in 2010. Turkey and chicken compete for the same uses but chicken is cheaper to produce. Hungarian turkey Industry reported 8.2% drop in production in 2010 and the downward trend continued in the 1st quarter of 2011. Profitability of turkey production was negatively affected by the high feed, energy, and other industrial input prices but similarly to broilers, turkey producers managed to enhance their prices in 2010-2011. Turkey producers similarly to farmers of other poultry face the challenges of mandated renewal of barn technology and a national Salmonella eradication program. Both programs receive some EU support, but the tight profitability of poultry production and the limited agricultural budget of the GOH are unable to provide farms with the required support. Consumption: Turkey Consumption (Top 5 EU-27 Member States) 1000MT 2010 2011 2012 Germany 466 460 460 France 319 317 317 Italy 235 224 219 Poland 154 162 162 United Kingdom 170 160 160 Turkey meat consumption in the EU-27, overall, is expected to decrease in 2011 and 2012. In some countries such as France and UK, consumers continue to shift away from turkey to chicken which is perceived as tastier. Processors also prefer to switch to broiler from turkey as processing yields on carcasses are higher. Trade: Turkey Extra EU-27 Imports (Top 5 EU-27 Member States) 1000MT 2010 2011 2012 Benelux 61 62 62 Germany 20 15 15 France 7 7 7 Spain 8 8 8 United Kingdom 7 5 3 Turkey Extra EU-27 Exports (Top 5 EU-27 Member States) 1000MT 2010 2011 2012 France 32 35 35 Benelux 23 23 23 Germany 31 30 30 Italy 15 22 25 Poland 11 10 10 Imports should remain stable under import quota control. French turkey exports to Africa are expected to remain stable as well as German and Dutch exports to Russia. Production, Supply and Demand Data Statistics: Country: EU27 Commodity: Meat, Turkey (1000MT CWE) Year 2010 2011 2012 USDA Posts USDA Posts USDA Posts Official estimates Official estimates Official estimates [EU-25] [EU-27] [EU-25] [EU-27] [old] [EU-27] Beginning Stocks Production 1815 1946 1795 1940 1910 Imports 115 99 115 90 90 TOTAL SUPPLY 1930 2045 1910 2030 2000 Exports 110 134 105 150 150 TOTAL Dom. Consumption 1820 1911 1805 1880 1850 Ending Stocks TOTAL DISTRIBUTION 1930 2045 1910 2030 2000 Source: EU FAS Offices Production figures have been revised significantly due to revised production data from Spain. Policy: Renewed concerns about Mercosur FTA negotiations EU-Mercosur FTA [1] negotiations, which started in 1999, came to a halt in 2004 after the gap on especially agricultural positions proved unbridgeable. However, after informal contacts, the EU decided in May 2010 that negotiations could continue and an EU-LAC Summit [2] convened in Madrid on 18 May 2010 with the theme 'Towards a new stage in the bi- regional partnership: Innovation and Technology for sustainable development and social inclusion'. Several negotiation rounds were called with active participation of Trade Commissioner De Gucht, but after the fifth round of talks in May of 2011, it became clear that a conclusion of negotiations would be delayed for political reasons, like the Argentinean presidential elections in October 2011. Nevertheless, the resumption of the EU-Mercosur trade talks spurred serious concerns in EU Member States and agricultural sectors, especially beef, poultry and sugar. In a May 17, 2011 press release, EU farmers union Copa-Cogeca [3] supported opposition from EU Member States (MS) and farmer unions. Also in the European Parliament critical voices were raised about the impact of an EU-Mercosur FTA on European agriculture. Animal welfare situation for EU poultry farming Council Directive 2007/43/EC laying down minimum rules for the protection of chickens kept for meat production, with final implementation date of June 30, 2010, set the general stocking density for broilers in the EU at 33 kg/m², with derogations possible by MS to 39 kg/m² or even 42 kg/m² under certain circumstances. This directive did not create major market disruptions during implementation. However, it is estimated that it increased the cost of production by around 1 percent. Reports are also appearing about practical implementation issues of the stocking density criteria, as a delay of only a few days before slaughter can lead to a breach. Farmers complain that they have little control over slaughterhouse decisions and therefore cannot be held accountable for incidental breaches of the stocking density criteria. Furthermore, the European Food Safety Authority (EFSA) is working on a report on the implementation of the transport Council Regulation (EC) No 1/2005 [4] . This EFSA report is expected to become the basis for a new Commission proposal to strengthen the animal transportation legislation, which could also affect the transportation of poultry. Imports of processed poultry under HS16023230 EU27 (External Trade) Import Statistics Commodity: 16023230, Prepared Or Preserved Meat Or Meat Offal Of Fowls Of The Species Gallus Domesticus Containing >= 25% But < 57% Of Poultry Meat Or Offal (Excl. Sausages And Similar Products, Finely Homogenized Preparations Put Up For Retail Sale As Infant Food Or For Die Annual Series: 2005 - 2010 ntity Partner Country Unit Qua 2005 2006 2007 2008 2009 2010 World T 5631 13497 26060 48504 69510 81555 Brazil T 4131 11484 19338 35749 54020 63820 Thailand T 324 741 5490 11298 13621 15252 Croatia T 1152 1193 1078 1289 1402 1513 Argentina T 0 61 97 0 0 0 Israel T 21 8 49 154 186 169 Switzerland T 0 10 7 10 8 6 China T 0 0 0 0 264 710 Turkey T 0 0 0 0 0 85 After the EU remedied on the tariff loophole in its tariff schedule for salted poultry, which led to the WTO case by Brazil and Thailand, it appears that the tariff for processed poultry under HS16023230 became the next lowest tariff line for poultry exports to the EU beyond the existing quota at reduced duty. After exponentially increasing between 2005 and 2008, the growth rate leveled off, but imports continue still increasing at a high level. EU27 (External Trade) Import Statistics Commodity: 16023230, Prepared Or Preserved Meat Or Meat Offal Of Fowls Of The Species Gallus Domesticus Containing >= 25% But < 57% Of Poultry Meat Or Offal (Excl. Sausages And Similar Products, Finely Homogenised Preparations Put Up For Retail Sale As Infant Food Or For Die Quarterly Series: 1st/10 - 2nd/11 ntity Partner Country Unit Qua 1st/10 2nd/10 3rd/10 4th/10 1st/11 2nd/11 World T 19427 19346 21839 21052 25033 20823 Brazil T 15337 15411 17265 15902 18050 14829 Thailand T 3569 3447 3934 4315 6487 5325 China T 71 97 160 382 53 187 It is not clear how the EU can stop this new tariff ?loophole? without risking another WTO complaint. The EU has been negotiating with the exporting countries under Article XXVIII for the modification of concessions, but it is not known when an agreement can be reached. [1] http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/regions/mercosur/ [2] Latin-America and the Caribbean countries [3] www.copa-cogeca.be/Download.ashx?ID=639500&fmt=pdf [4] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:003:0001:0044:EN:PDF Related Reports From FAS EU-27 Posts Report number Title Date IT1124 Poultry Outlook 2011 06/21/2011 E60042 Implementation of Animal Welfare Directives in the EU 07/14/2011 GR1106 Poultry Annual 2011 07/21/2011 These reports (and many others) can be accessed at the FAS website: http://gain.fas.usda.gov/Pages/Default.aspx -For additional poultry market related information, please contact: Xavier Audran (FAS Paris) E-mail: xavier.audran@fas.usda.gov -For additional poultry policy related information, please contact: Yvan Polet (FAS Brussels U.S. Mission to the EU) E-mail: yvan.polet@fas.usda.gov
Posted: 27 September 2011, last updated 27 September 2011

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