Global poultry trade has become highly volatile, with Brazil very much at the centre of the turmoil. Aside from issues surrounding the weak flesh investigation and associated trade implications, the country has also faced a major truckers’ strike, which led to the massive culling of birds. Rabobank expects the global turmoil to continue in 2H 2018, as new issues are set to impact trade, such as rising US-Chinese trade tensions, the recent safeguard measures on Brazilian poultry set by China, and changes to Saudi Arabia’s halal stunning requirements. This could lead to further changes in global trade, along with a risk of volatility in feed costs and trade arrangements, according to the latest Rabobank report ‘Poultry Quarterly Q3 2018: Trade Volatility, but Local Markets Bullish’.
According to Nan-Dirk Mulder, Senior Analyst – Animal Protein at RaboResearch: “Global trade has recently become highly volatile, and we have seen some major movements in trade streams and prices due to several important factors.” These include:
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