According to the Farmers Guardian the UK poulty industry is suffering from high feed prices, limitetd volume growth and oversupply despite operating in one of the highest value-added markets in the EU.
That is the view of Rabobank which sees the industry at a crossroads, with the way forward including further consolidation, greater efficiency, better supply discipline and what the bank terms further internationalisation.
Rabobank’s dissection of the poultry industry concludes the retailers are in the driving seat because of over-supply and it is for this reason it says consolidation is necessary to match production more closely to retail.
“The current structure of the industry is not sufficiently effective, especially not when it comes to competing with powerful British supermarkets. The principal elements which will separate the winners from the losers over the next few decades include increased focus, wise investments in efficiency and more integration with the north-western European poultry industry.”