Market Trends of germany poultry meat Industry
Chicken accounts for 90% of the country's poultry population
- Poultry production in Germany experienced a slight decline of 1.36% in growth in 2022 compared to the previous year. In 2022, the poultry population in Germany constituted 90% laying hens and broiler chickens. The turkey accounts for most of the remaining population, followed by ducks with approximately two million animals. Goose farming in Germany is limited to selling St. Martin's Goose or Christmas goose, while guinea fowl, ostrich, pheasant, quail, and pigeon are only present in a minimal number.
- Compared to broilers, turkeys, or Peking ducks, the economic situation of chicken meat production in Germany shows considerable advantages for broilers compared to other poultry species regarding cultivable land, overall margin, and per working hour earnings. Lower Saxony has a dominant position in poultry farming. Every second chicken in Lower Saxony is kept on a poultry farm. Turkey and duck farming also dominate in Lower Saxony, with 40% of each being held in farms.
- Intensive breeding programs conducted in Germany refined specific characteristics of chickens, leading to the emergence of various breeds of chickens, including the Augsburg, the Bergische, the Bielefeld, the German Langshane, and the Lohmann Brown chicken. As environmental concerns become increasingly acute, the German government has been investing in projects like "GreenChicken," which seeks to improve the economics of on-farm operations by providing organic chicken with environmentally and climatologically friendly feed. Expanding processing facilities contributes to increased broiler meat production, resulting in self-sufficiency, while turkey and Pekin ducks met only 76% and 86.5% of domestic demand in 2022, respectively.
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Inflation in the country is leading to a rise in consumer prices, including poultry
- The poultry prices in Germany rose by 8.23% from 2017 to 2022. Germany’s inflation rate was 6.4% in June 2023, compared with 6.1% in May 2023. The inflation rate increased slightly in June 2023 after declining for three consecutive months. Poultry prices were 25% higher in March 2023 than in March 2022, driven by chicken prices (+19.3%).
- The increase in poultry prices across the country is primarily attributed to the increasing cost of production. As a result, poultry farmers face considerable financial difficulties due to increased feed and energy costs. This has resulted in a rise in the retail price of poultry meat. According to the Central Association of the German Poultry Industry (ZDG), poultry meat may become scarce in supermarkets if producers cannot afford their produce fare. The cost of feed has doubled, while the cost of gas has nearly tripled in the context of the ongoing Russia-Ukraine conflict. To balance the cost of production, producer prices increased from USD 1.00/kg to USD 1.60/kg for chicken and from USD 1.58/kg to USD 2.20/kg for turkey meat. As of 2022, one in five turkey houses in the country were empty due to higher production costs.
- The price of broiler chicken weighing 2,000 g was USD 1.28/kg in May 2023, which was USD 1.26/kg in May 2022. For slaughter, hens weighed 1,700-1,900 g, and the average price was USD 0.26 in May 2023, whereas in May 2022, it was USD 0.33. Similarly, for turkey hens weighing 9.5 kg, the prices were USD 1.84/kg in May 2023 and USD 1.62/kg in May 2022. Turkey roosters of 18.5 kg were priced at USD 1.85/kg and USD 1.65/kg in May 2023 and 2022, respectively.
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