Like many sectors of agriculture in 2020, COVID-19 caused a big disruption to the poultry industry. Unfortunately, RaboResearch said the global poultry industry will face even more challenges in 2021, especially in the first half of the year. That according to new data in the RaboResearch 2021 Poultry Quarterly.

COVID-19 will place continuing pressure on foodservice and trade, and the consequent slow economic growth will lead to more price-driven market conditions. As those market fundamentals appear challenging for 2021, a RaboResearch report said the poultry industry should prepare for a tough year.

“Looking forward, we see four main challenges for the global poultry industry,” says Nan-Dirk Mulder, senior animal protein analyst with Rabobank and the lead author of the report. “The challenges include ongoing impacts of COVID-19 on the markets, high and volatile feed prices, China’s African Swine Fever recovery, and the northern hemisphere avian influenza crisis.”

Falling demand in China and Vietnam will push traders to find other markets and depress global markets during the first half of 2021. Better control of COVID-19 should lead to a gradual recovery of foodservice markets later next year.

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