Australia’s poultry industry needs to shift its focus if it is to “catch the next wave of growth”.
This is the opinion of agribusiness specialist Rabobank, which states in a recent report that the chicken meat industry needs to focus on alternative strategies to capture new opportunities rather than relying on increasing per-capita consumption.
Report author and animal proteins analyst Angus Gidley-Baird (pictured, below) said strong growth – in both volume and value terms – is possible, but there is a need to pursue new export markets, higher-value propositions for consumers, and productivity gains.
“Through the adoption of these strategies, our analysis indicates that the Australian poultry industry can achieve an average annual growth rate of 3.5 per cent over the next five years,” he said.
“This represents a moderation from the lofty growth rates of 5.9 per cent achieved in recent years, as the industry matures and domestic consumption stabilises.
"However, it would still see production lift by around 40,000 tonnes per year – equating to an additional 109 million birds by 2021.”
The report warns that unless there is an expansion into new export markets, growth in the poultry industry will be linked to population growth, which is expected to be fairly lacklustre at around 1.17 per cent per annum.
Developing new markets
The report says an increase in exports, to around 10 per cent of production, will be key to increasing volume and value in the industry.
“Currently, less than five per cent of Australian chicken is exported,” Gidley-Baird said.
"However, there are significant growth opportunities in South-East Asia as their per capita consumption increases.”
While it would be difficult for Australia to compete from a total cost perspective, stated the report, there are opportunities to sell different cuts and therefore complement the total return per bird.
