Analysis of Poultry Meat Market in the E.U.-27

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Analysis of Poultry Meat Market in the E.U.-27

Ion Pirvutoiu

1

, Agatha Popescu

2

1_{Hyperion University Bucharest, 030615-Bucharest, District 3, Calarasilor, 169, Romania}

2_{University of Agricultural Sciences and Veterinary Medicine Bucharest}

011464-Bucureşti, District 1, Marasti, 59, Romania,

Abstract

The paper aimed to present the evolution of poultry meat market in the E.U.-27 in the period 2007-2009 by means of the specific indicators: poultry livestock, poultry meat production and trade both at member state level and at community level. The analysis has pointed out that despite that poultry stock was reduced by 6.10 %, poultry meat production increased by 10.70%, import increased by 9.18% and export by 11.31%. This was due to the fact that many people are oriented to poultry meat which is a white and lean meat, rich in high value protein, it has less

cholesterol and a high digestibility, a nice flavor when it is prepared. In 2009, Romania was situated on the 9th

position among the EU countries concerning poultry livestock and meat production, on the 11th position concerning

poultry meat export and on the 5th position regarding import. As a conclusion, the EU is an important producer,

exporter and importer of poultry meat and in the coming years it is expected a continuous increase of production.

Keywords: analysis, E.U., market, meat, poultry

1. Introduction

Poultry farming is more and more important in the world agriculture, including in the EU countries because it provides high value food: meat and eggs. Poultry meat is rich in proteins and essential amino-acids, vitamins and minerals, it has a high digestibility, less cholesterol, it is a white, lean and healthy meat, an ideal food for all the ages. From the farmer’s point of view, broilers fattening assures more high value meat, in a short period of time and is less costing compared to the fattening of other species. Poultry meat, mainly chicken and turkey meat have a special flavor when they are prepared because their high nutritive value and less calories. White chicken meat contains 77 % proteins and 172 calories per 100 grams of cooked meat and white turkey meat contains 81% proteins, no fatty acids and has 157 calories per 100 grams. For its special qualities, poultry meat grill is warmly recommended by doctors and

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* Agatha Popescu, Tel: +40 21 318 2564/232, Fax: +40 21 3182888, Email: agatha_popescu@yahoo.com

nutritionists as mentioned by Vacaru-Opris Ioan [1].

The EU-27 is an important poultry meat producer, exporter and importer in the world. It comes on the 3rd position contributing by 12% to global poultry meat production, besides USA (21%), China (18%), Brazil (11%), Mexico (3%) as mentioned by FAO. It also consumes 12% of global poultry meat [2].

The evolution of poultry production, the leading countries in the fields, trends in meat production and trade have been recently approached at global and the EU level by Peter van Horne [3] and Hans-Wilhelm Windhorst [4].

The most important consumers of poultry meat are Americans, Japanese, French, Germans. Poultry meat consumption has increased in Romania from about 13 kg/inhabitant in 1995 to over 20 kg at present. Poultry meat is on the 2nd position in the Romanians diet after pork. Romania has a high production potential as presented by Vacaru-Opris Ioan [1].

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analyzing the evolution of the specific indicators regarding poultry live stock, production and trade after the EU enlargement from 2007 till 2009, based on the data provided by FAO Stat [5].

2. Materials and methods

In order to set up this paper, the following specific indicators characterizing poultry meat market have been used: poultry livestock, poultry meat production, amount of imported poultry meat and its value, the amount of exported meat and its value, as well as the import (CIS) and export (FOB) prices. The data were provided by FAO Statistics for the period of reference 2007-2009. The calculations have been based on the usual methodology for such a market study.Fixed Basis Index (FBI), 2007=100, was mainly used for reflecting the evolution of each indicator taken into consideration based on the

formula:

.

100

0

x

FBI

_

n

The results are presented by each EU member state and also at the European Community level.

3. Results and discussion

Poultry livestock recorded a decrease by 6.10% from 1,340 million heads in 2007 to 1,258 million heads in the year 2009.The situation is different from a country to another. There are countries where poultry stock increased such as Slovenia (+50.29%), Denmark (+20.39%), Luxembourg (+18.94%), United Kingdom (+7.92%), Estonia (+7.19 %), Austria (+6.85 %), Slovakia (+6.47%), Portugal (+5.40%), Netherlands (+4.57%), Germany (+2.94%), Hungary (+2.84%), Romania (+1.59%), Sweden (+1.11%) as well as countries where it decreased: Malta 28.58%), Belgium 11.31%), Czech Republic 7.91%), Poland (-6.73%), Cyprus (-5.26%), Lithuania (-4.26%), Finland 3.08), Latvia 2.37%), Bulgaria (-2.29%), France (-0.34 %).The top 10 countries regarding the poultry livestock are in the decreasing order of their contribution to the EU stock are: France (13.98%), United Kingdom (13.50%), Spain (10.96%), Poland (9.86 %), Germany (9.37%), Italy (7.95%), Luxembourg (7.74 %), The Netherlands (7.70%), Romania (6.66%), Portugal (3.09%). The poultry stock existing in all these 10 countries represents 90.81% of the EU poultry stock (Table 1).

Table 1. Poultry stock in the EU-27 in the period 2007-2009 (Million heads)

Country 2007 2008 2009

2009-2007 %

Country 2007 2008 2009

2009-2007 %

Austria 13.57 14.00 14.50 106.85 Latvia 4.10 4.00 4.00 97.63

Belgium 32.75 32.49 29.05 88.69 Lithuania 9.23 9.69 8.84 95.74

Bulgaria 17.96 16.43 17.55 97.71 Luxembourg 81.91 81.37 97.42 118.94

Cyprus 3.06 3.03 2.90 94.74 Malta 0.70 0.48 0.50 71.42

Czech Republic

26.10 25.49 24.04 92.09 Netherland 92.76 96.70 97.00 104.57

Denmark 15.97 14.71 19.22 120.39 Poland 133.07 128.79 124.13 93.27

Estonia 1.64 1.48 1.76 107.19 Portugal 37.00 38.00 39.00 105.40

Finland 5.07 5.67 4.92 96.92 Romania 82.04 84.37 83.84 101.59

France 176.58 175.00 176.00 99.66 Slovakia 12.44 10.88 13.25 106.47

Germany 114.62 115.00 118.00 102.94 Slovenia 2.92 4.35 4.39 150.29

Greece 31.76 31.80 31.80 100.11 Spain 137.00 138.00 138.00 100.72

Hungary 30.30 29.87 31.16 102.84 Sweden 7.08 7.19 7.16 101.11

Ireland 13.00 13.00 13.00 100.00 United

Kingdom

157.51 154.18 170.00 107.92

Italy 100.00 100.00 100.00 100.00 TOTAL

E.U.-27

1,340.14 1,335.97 1,258.43 93.90

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highest production gain was recorded in: Estonia (+29.56%), Slovenia (+29.34%), Romania

(+118.96%), Luxembourg (+18.96%), Poland

(+18.23%), Germany (+16.62%), United Kingdom (+15.17%), Latvia (+13.17%), France (+12.87%), Italy (+12.18%), Netherlands (+11.65%), Portugal (+10.15%), Hungary (+8.99%), Bulgaria

(+6.13%), Austria (+6.09%), Lithuania (+5.38%), Belgium (+4.77%), Spain (+4.29%), Malta (+2.17%) (Table 2).

Table 2. Poultry meat production in the EU-27 during the period 2007-2009 (Thousand Tons)

Country 2007 2008 2009

2009-2007 %

Country 2007 2008 2009

2009-2007 %

Austria 95.2 97.1 101.0 106.09 Latvia 20.5 23.1 23.2 113.17

Cyprus 27.8 18.4 26.9 96.76 Malta 4.6 5.0 4.7 102.17

Czech Republic

201.0 195.3 188.4 93.73 Netherland 684.0 693.0 763.7 111.65

Denmark 172.3 176.0 168.6 97.85 Poland 896.4 729.8 1,059.8 118.23

Estonia 11.5 13.1 14.9 129.56 Portugal 223.3. 236.7 247.3 110.15

Finland 95.4 100.9 94.9 99.47 Romania 312.1 316.0 371.3 118.96

France 920.5 931.8 1,039.0 112.87 Slovakia 83.0 75.5 75.1 90.48

Greece 116.0 111.5 111.8 96.38 Spain 1,131.0 1,081.7 1,179.5 104.29

Hungary 195.7 217.2 213.3 108.99 Sweden 105.4 107.2 105.2 99.81

Ireland 85.0 85.0 85.0 100.00 United

Kingdom

1,270.2 1,259.0 1,463.0 115.17

Italy 733.0 790.3 822.3 112.18 TOTAL

E.U.-27

8,734.8 8,704.2 9,669.6 110.70

In the other EU countries, poultry meat production decreased. The top 10 EU countries regarding poultry meat production have been, in the decreasing order of their contribution to the EU-27 production: United Kingdom (15.13%), Spain (12.20%), Poland (10.96%), France (10.75%), Italy (8.50%), Germany (8.29%), The Netherlands (7.90%), Belgium (4.85%), Romania (3.84%) and Portugal (2.55%) which together totalized 84.97% of the EU production.

Poultry meat production per inhabitant in the EU-27 was 19.37 kg in the year 2009. The highest production/inhabitant was achieved by the

following 10 countries in the decreasing order: Latvia 102.61 kg, The Netherlands 46.12 kg, Belgium 44.02 kg, Denmark 30.51 kg, Luxembourg 27.71 kg, Poland 27.70 kg, Slovenia 27.22 kg, Spain 25.82 kg, Cyprus 24.69 kg and United Kingdom 23.63 kg.

Contribution of poultry meat production to the EU meat production in the year 2009 represented 24.70% of the EU meat production. It comes on the 2nd position after pork (52.66%). Poultry meat is the only sort of meat which registered an increase in the period 2007-2009 (Table 3).

Table 3. Contribution of poultry meat production to the E.U.-27 meat production in the period 2007-2009 (Thousand Tons)

Meat Sort 2007 2008 2009 2009-2007 % 2009%

Pork 21,024.8 20,809.3 20,430.9 97.17 52.66

Poultry meat 8,734.8 8,704.2 9,669.6 110.70 24.70

Beef 8,137.8 8,067.8 9,669.6 96.81 20.42

Mutton 1,0016 932.2 859.5 85.81 2.22

TOTAL E.U.-27 38,949.0 38,513.5 38,886.4 99.84 100.00

The amount of imported poultry meat increased at the European Community level by 9.18% from

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increase of imported meat in many member states. The decreasing order of the countries based on the relative gain registered in 2009 compared to 2007 was the following one: Bulgaria (+111.71%),

Czech Republic (+49.42%), Cyprus (+38.23%), The Netherlands (+33.27%), Portugal (+26.34%), Slovakia (+22.64%), Italy (+20.36%), France (+20.06%), Finland (+14.70%), Greece (+11.98%), Malta (+11.90%), Bulgaria (+11.71%), Denmark (+9.95%), Spain (+8.42%), Germany (+8.32%), Sweden (+8.12%), Estonia (+6.35%), Luxembourg (+6%), Slovenia (+3.84%), Hungary(+3.21%). But there were also countries whose poultry meat import decreased such as: Poland, Lithuania, Latvia, Ireland, Romania, United Kingdom which were able to

produce as much as they needed to cover consumers demand. In the year 2009, the top 10 poultry meat importers in the EU, in the decreasing order, based on heir contribution to the amount of imported poultry meat at the Community level, were: The Netherlands (16.47%), United Kingdom(16.18%), Germany (13.93%), France( 13.62%), Romania (5.25%), Belgium (5.10%), Spain (4.59%), Czech Republic (2.78%), Bulgaria (2.50%), Ireland (2.15%). All these 10 states contributed by 82.57% to the total amount of poultry meat imported by the E.U.-27 in the year 2009 (Table 4).

Table 4. Amount of poultry meat imported by the EU-27 in the period 2007-2009 (Thousand Tons)

Country 2007 2008 2009

2009-2007 %

Country 2007 2008 2009

2009-2007 %

Austria 30.7 30.6 33.0 106.09 Latvia 25.9 24.1 21.7 83.78

Cyprus 3.4 4.6 4.7 138.23 Malta 4.2 3.9 4.7 111.9

Czech Republic

35.0 43.3 52.3 138.23 Netherland 232.2 408.0 309.6 133.27

Denmark 24.1 24.4 26.5 109.95 Poland 33.5 16.4 17.6 52.54

Finland 3.4 3.8 3.9 114.70 Romania 100.1 86.4 98.8 98.70

France 213.3 230.1 256.1 120.06 Slovakia 21.2 25.9 26.0 122.64

Greece 35.9 40.9 40.2 111.98 Spain 79.6 79.8 86.3 108.42

Hungary 21.8 25.2 22.5 103.21 Sweden 32.0 34.3 34.6 108.12

Ireland 42.6 46.2 40.5 95.07 United

Kingdom

338.8 296.5 304.2 89.78

Italy 22.1 22.3 26.6 120.36 TOTAL

E.U.-27

1,721.0 1,858.8 1,879.0 109.18

The amount of exported poultry meat. In 2009, the E.U.-27 exported 2,544 thousand tons poultry meat, by 11.31% more than in the year 2007 (2,285.7 thousand tons).

The decreasing hierarchy of the EU countries to the export gain recorded in the year 2009 compared to the one registered in the year 2007 was the following one: Estonia (+150 %), Bulgaria (+121.69%), Romania (+75.29), Hungary (+68.39%), Poland (+53.36%), Cyprus (+50 %), Luxembourg (+50%), Latvia (33.33%), Spain (+25.62%), Germany (+18.86%), Ireland (+18.62%), Austria ( +15.74%), Lithuania

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Table 5. Amount of poultry meat exported by the EU-27 in the period 2007-2009 (Thousand Tons)

Country 2007 2008 2009

2009-2007 %

Country 2007 2008 2009

2009-2007 %

Austria 25.4 25.9 29.4 115.74 Latvia 3.3 3.4 4.4 133.33

Cyprus 0.6 0.9 0.9 150.00 Malta 0.005 0.008 0 0

Czech Republic 18.5 18.1 19.1 103.24 Netherland 695.7 683.7 731.8 105.20

Denmark 86.4 77.2 83.7 96.87 Poland 140.0 153.3 214.7 153.36

Finland 8.7 9.7 9.4 108.04 Romania 1.7 8.9 29.8 175.29

France 326.1 342.9 348.5 106.86 Slovakia 16.1 15.6 14.7 91.30

Greece 11.9 12.3 11.3 94.95 Spain 51.9 72.0 65.2 125.62

Hungary 21.2 35.3 35.7 168.39 Sweden 14.5 9.9 8.7 60.00

Ireland 18.8 16.9 22.3 118.62 United

Kingdom

227.0 218.0 202.1 89.03

Italy 50.7 53.5 55.7 109.86 TOTAL

E.U.-27

2,285.7 2,324.4 2,544.1 111.31

Poultry meat import value increased from USD Million 4,806.7 in the year 2007 to USD Million 5,213.1 in the year 2009. Therefore, in the last analyzed year, the import value was by 8.45% higher than in 2007. This trend was positively influenced by the increased poultry meat production and also by the import price. The countries which registered an increased export value were the following ones: Bulgaria (+192.31%), Slovakia (+47.51%), Czech Republic (+41.08%), Portugal (+38.19%), Cyprus (+35.87%), France (+28.91%), Italy (+28.25%), Luxembourg (+25.22%), Belgium (+23.21%), The Netherlands (+22.55%), Slovenia (+19.46%), Austria (+19.27%), Hungary (+17.59%), Malta (+17.21%), Estonia (+8.98%), Spain (+8.34%), Germany (+8.30%), Sweden (+7.78%) and Finland (+1.13%). In the year 2009, on the first 10 positions in the ranking of the E.U. poultry meat importers based on the share in the E.U.-27 import value were: United Kingdom (23.11%), Germany (14.05%), France (13.51%), The Netherlands (11.67%), Belgium (4.80%), Spain (4.18 %), Ireland (3.52%), Romania (3.24%), Sweden (2.98%) and Greece (2.37%). All these 10 countries contributed by 83.43% to the E.U.-27 value of imported poultry meat in the year 2009 (Table 6).

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Table 6. Poultry meat import value in the E.U.-27 in the period 2007-2009 (USD Million)

Country 2007 2008 2009

2009-2007 %

Country 2007 2008 2009

2009-2007 %

Austria 91.3 103.9 108.9 119.2 Latvia 39.1 42.8 36.2 92.58

Cyprus 9.2 14.4 12.5 135.86 Malta 12.2 13.5 14.3 117.21

Czech Republic

86.4 124.1 121.9 141.08 Netherland 496.3 629.4 608.5 122.55

Denmark 115.6 145.6 112.0 96.88 Poland 39.1 34.5 28.7 73.4

Finland 17.6 21.8 17.8 101.13 Romania 170.1 174.1 169.0 99.35

France 546.4 683.2 704.4 128.91 Slovakia 54.3 76.6 80.1 147.51

Greece 103.0 140.0 123.9 120.29 Spain 201.4 215.2 218.2 108.34

Hungary 29.0 46.8 34.1 117.59 Sweden 144.0 188.6 155.2 107.78

Ireland 201.3 234.6 183.9 91.36 United

Kingdom

1,351.5 1,276.4 1,205.2 89.17

Italy 62.3 70.4 79.9 128.25 TOTAL

E.U.-27

4,806.7 5,434.3 5,231.1 108.45

Table 7. Poultry meat export value in the E.U.-27 in the period 2007-2009 (USD Million)

Poultry meat trade balance reflects that the E.U.-27 is a net exporter of poultry meat as its export value exceeded the import value in the

period 2007-2009. In 2009, the surplus counted for USD Million 448.5 being by 4.69% higher in comparison with 2007 (Table 8).

Table 8. The E.U.-27 Poultry meat trade balance in the period 2007-2009 (USD Million)

Country 2007 2008 2009

2009-2007 %

Country 2007 2008 2009

2009-2007 %

Austria 45.4 54.2 68.7 151.32 Latvia 8.9 10.5 11.7 131.46

Cyprus 0.5 0.7 0.7 140.00 Malta 0.019 0.049 0 0

Czech Republic

42.6 56.7 46.6 109.39 Netherland 1,716.6 1,826.1 1,713.9 99.84

Denmark 242.3 254.3 209.3 86.34 Poland 358.4 397.2 465.5 129.88

Finland 13.1 17.0 15.5 118.32 Romania 4.2 19.9 61.1 145.48

France 768.1 932.8 808.8 105.29 Slovakia 47.2 54.6 43.8 92.79

Greece 12.3 15.9 12.7 103.25 Spain 106.6 137.2 122.1 114.54

Hungary 81.0 119.4 112.2 138.52 Sweden 33.9 27.5 12.8 37.75

Ireland 47.5 44.6 44.9 93.47 United

Kingdom

294.4 299.2 268.2 91.10

Italy 126.4 157.6 146.8 116.13 TOTAL

E.U.-27

5,235.1 5,836.7 5,679.6 108.49

Specification 2007 2008 2009 2009/2007%

Export 5,235.1 5,836.7 5,679.6 108.49

Import 4,806.7 5,434.3 5,231.1 108.45

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Poultry meat export-FOB and import-CIF price. Import price per ton slightly increased from USD 2.79 in 2007 to USD 2.92 in 2008 and then decreased a little to USD 2.81. Export price per ton increased from USD 2.29 in 2007 to USD 2.51

in 2008 and then decreased to USD 2.21. Import was about USD 2.84/ton in average during the analyzed period while average export price counted for USD 2.34. While import price registered a slight increase by 0.71%, export price decreased by 3.50% during the analyzed period (Table 9).

Table 9. Poultry meat import CIS and export FOB price in the E.U.-27 in the period 2007-2009 (USD/ton)

Specification 2007 2008 2009 2009/2007%

I E I E I E I E

Austria 2.79 1.79 3.40 2.08 3.29 2.34 110.7 130.7

Belgium 2.26 2.22 2.52 2.42 2.61 2.24 138.09 64.01

Bulgaria 1.05 5.03 1.42 4.74 1.45 3.22 138.09 64.01

Cyprus 2.70 0.85 3.16 0.70 2.63 0.75 97.40 88.23

Czech Republic 2.47 2.30 2.86 3.11 2.33 2.44 94.33 106.08

Denmark 4.78 2.80 5.96 3.29 4.23 2.50 88.49 89.28

Estonia 1.69 2.93 2.04 2.63 1.73 2.20 102.36 75.08

Finland 5.16 1.49 5.74 1.76 4.54 1.65 87.98 110.73

France 2.56 2.35 2.97 2.72 2.75 2.32 107.42 98.72

Germany 2.80 2.19 3.46 2.43 2.80 2.25 100.00 102.73

Greece 2.87 1.03 3.42 1.29 3.08 1.12 107.31 108.73

Hungary 1.33 3.82 1.86 3.37 1.52 3.14 114.28 82.19

Ireland 4.73 2.53 5.07 2.63 4.54 1.99 95.98 78.65

Italy 2.82 2.49 3.14 2.94 3.00 2.64 106.38 84.07

Latvia 1.51 2.72 1.77 3.12 1.67 2.68 110.59 98.52

Lithuania 1.50 2.49 1.73 2.86 1.66 2.82 110.66 113.25

Luxembourg 4.45 6.64 5.11 6.77 5.28 6.33 118.65 95.33

Malta 2.90 3.80 3.46 6.12 3.06 0 105.51 0

Netherlands 2.13 2.47 1.54 2.67 1.97 2.34 92.48 94.73

Poland 1.17 2.56 2.09 2.59 1.63 2.17 139.31 84.76

Portugal 2.18 2.02 2.74 2.63 2.38 2.11 109.17 104.45

Romania 1.70 2.53 2.01 2.23 1.71 2.05 100.58 81.02

Slovakia 2.56 2.93 2.96 3.51 3.08 2.99 120.31 102.05

Slovenia 2.16 2.92 2.56 2.91 2.48 2.90 114.81 99.31

Spain 2.53 2.05 2.69 1.90 2.53 1.87 100.00 91.21

Sweden 4.50 2.35 5.49 2.77 4.48 1.46 99.55 62.12

United Kingdom 3.99 1.30 4.30 1.37 3.96 1.33 99.24 102.30

TOTAL E.U.-27 2.79 2.29 _{2.92 2.51 2.81 2.21}_100.71_96.50

4. Conclusions

The E.U.-27 is an important producer, exporter and importer of poultry meat. Despite that the EU poultry stock decreased by 6.10%, poultry meat production increased by 10.70% showing a higher productivity in this sector. Also poultry meat is the only sort of meat which has recorded an increase during the period 2007-2009 compared to the other sorts of meat.

The main poultry meat producers are: United Kingdom, Spain, Poland, France, Italy, Germany, The Netherlands, Belgium, Romania and Portugal

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analyzed period, the E.U.-27 performed a positive poultry meat trade balance, reflecting that the E.U.

is a net exporter.

Romania has a high potential for producing poultry meat. It comes on the 9th position for poultry stock and meat production, on the 13th position for production per inhabitant, on the 5th position for the quantitative import, on the 11th position for the quantitative export, on the 8th position for import value and on the 13th position for export value. Its trade balance was a negative one in the analyzed period and regarding the year 2009, its import value counted for USD Mil. 169 while export value was just USD Mil. 29.8 reflecting a deficit of USD Mil. 139.2.

As a final conclusion poultry meat sector will continue developing in the coming years due to consumer’s preference for this sort of meat. In the future, for Romania it could be better to export poultry meat instead of exporting cereals in order to balance its foreign trade deficit.

Acknowledgements

All the support given by FAO Stat in order to put at the author’s disposal the data for the period 2007-2009 for setting up this paper is gratefully acknowledged.

References

1. Vacaru-Opris Ioan, Treatise of Poultry Science, Ceres Publishing House, Bucharest, 2007, Vol. I, Chapter 1, p.13-66

2. Poultry Meat and Eggs, FAO, 2000-2008, www.fao.org

3.Van Horne Peter, L.M., Production and consumption of poultry meat and eggs in the EU, Chap. 3, LEI, The Agricultural Economics Research Institute,

Wageningen, 2010, www.healthy-poultry.org/Results

4. Windhorst, Hans Wilhelm, Patterns and dynamics of global and E.U. poultry meat production and trade, Vechta University, Germany, Lohmann Information, 2011, 46(1), 28