Global poultry production is forecast to increase 2 percent to a record 89.3 million tons on expansion by all major traders, led by India – the fastest growing producer, the US Department of Agriculture said in its latest monthly report.
It said Brazil is expected to continue expanding more rapidly due to stable feed costs and increased exports after surpassing China to become the second largest producer in 2015.
India’s production is expected to increase 8 percent on rising demand by a growing middle class.
The USDA said exports by major traders are forecast to rebound 4 percent to a record 10.7 million tons. Shipments will increase by the top three suppliers, Brazil, the United States, and the EU, which account for more than three quarters of world trade.
“Exports will be driven by robust supplies placing downward pressure on prices, lower prices compared to other animal proteins, and a weak euro and Brazilian real,” it said, adding that many smaller markets will have marginal improvements in demand despite being constrained by lower oil prices and weak economic growth.
U.S. production is forecast to increase 2 percent to a record 18.4 million tons on heavier weights and lower feed costs. Exports are expected to rebound 8 percent to 3.2 million tons as lower prices and greater exportable supplies bolster shipments.