Chicken Export, 7 Reasons Why It's Booming

Chicken Export, 7 Reasons Why It’s Booming

7 Reasons Why Chicken Export is Booming in 2024

Chicken export is one of the fastest-growing sectors in the global food industry. According to the latest report by the Food and Agriculture Organization (FAO), chicken export increased by 12% in 2022, reaching a record high of 18.7 million tonnes. What are the factors behind this remarkable growth? Here are seven reasons why chicken export is booming in 2023.

1. Rising demand for chicken meat in developing countries

As incomes rise and urbanization expands, more people in developing countries are shifting their diets from cereals and vegetables to animal products, especially chicken meat. Chicken meat is affordable, versatile, and nutritious, making it an ideal choice for consumers who want to diversify their food intake and improve their health. The FAO estimates that the per capita consumption of chicken meat in developing countries will increase by 25% between 2018 and 2028, compared to only 4% in developed countries.


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2. Increasing production efficiency and competitiveness of chicken exporters

Chicken exporters have been investing in improving their production efficiency and competitiveness, adopting new technologies, enhancing biosecurity, and complying with international standards and regulations. These efforts have enabled them to reduce their costs, increase their yields, and improve their quality and safety. As a result, chicken exporters have gained a competitive edge over other meat exporters, such as beef and pork, which face higher production costs and environmental challenges.

3. Expanding market access and trade opportunities for chicken exporters

Chicken exporters have benefited from the expansion of market access and trade opportunities, thanks to the liberalization of trade policies, the reduction of tariffs and non-tariff barriers, and the establishment of preferential trade agreements. For example, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which entered into force in 2018, has created new opportunities for chicken exporters in the Asia-Pacific region, especially in Japan, Vietnam, and Malaysia. Similarly, the African Continental Free Trade Area (AfCFTA), which became operational in 2021, has opened up new markets for chicken exporters in Africa, especially in Nigeria, Ethiopia, and Kenya.

4. Diversifying product portfolio and target markets of chicken exporters

Chicken exporters have been diversifying their product portfolio and target markets, offering a wide range of products to meet the different preferences and needs of consumers around the world. For example, some chicken exporters have specialized in producing halal chicken products, catering to the growing demand from Muslim consumers in the Middle East, North Africa, and Southeast Asia. Others have focused on producing organic or free-range chicken products, appealing to the increasing demand from health-conscious and environmentally-aware consumers in Europe and North America.

5. Leveraging e-commerce and digital platforms for chicken export

Chicken exporters have been leveraging e-commerce and digital platforms to enhance their marketing and distribution channels, reaching more customers and increasing their sales. For example, some chicken exporters have partnered with online platforms such as Alibaba, Amazon, and Jumia to sell their products directly to consumers or retailers, bypassing intermediaries and reducing transaction costs. Others have used social media platforms such as Facebook, Instagram, and TikTok to promote their products and brands, engaging with potential customers and building loyalty.

6. Adapting to changing consumer preferences and trends for chicken consumption

Chicken exporters have been adapting to changing consumer preferences and trends for chicken consumption, offering products that suit the tastes and lifestyles of modern consumers. For example, some chicken exporters have developed ready-to-eat or ready-to-cook chicken products, such as nuggets, strips, burgers, and sausages, providing convenience and variety to busy consumers who want to save time and effort. Others have created value-added chicken products, such as marinated, smoked, or spiced chicken products, adding flavor and excitement to consumers who want to try new cuisines and experiences.


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7. Contributing to food security and sustainability through chicken export

Chicken export is not only a profitable business but also a social responsibility for many chicken exporters. By exporting their products, they are contributing to food security and sustainability in their own countries and around the world. Chicken export helps to create jobs and income for farmers and workers along the value chain, supporting rural development and poverty reduction. Chicken export also helps to reduce food waste and greenhouse gas emissions by utilizing surplus production and optimizing transportation modes.

Chicken Export Trends in 2022

According to the latest data from the World’s Top Exports, global sales of exported fresh chicken totaled US$8.9 billion in 2022, an increase of 32% since 2018. Exported frozen chicken attracted higher international sales at $22.4 billion, up by 9% from 2018. The top fresh chicken exporters in 2022 were Poland, Netherlands, United States, Belgium, and Germany, accounting for 72% of the total market share. The top frozen chicken exporters in 2022 were Brazil, United States, Netherlands, Poland, and Thailand, accounting for 77% of the total market share.

Chicken Export Challenges and Opportunities

The U.S. poultry industry faced several challenges in 2022 that affected its export performance, such as market access barriers, shipping disruptions, feed price volatility, and animal health issues. Some of the major markets that imposed restrictions on U.S. poultry products due to non-tariff barriers or sanitary concerns were South Korea, South Africa, and Saudi Arabia. However, the U.S. poultry industry also benefited from some opportunities in 2022 that boosted its export competitiveness, such as the reopening of the Chinese market after a five-year ban due to avian influenza, the implementation of the U.S.-Mexico-Canada Agreement (USMCA) that preserved duty-free access for U.S. poultry products in North America, and the increased demand for chicken as a low-cost protein source in developing countries amid the COVID-19 pandemic.

Chicken Export Outlook for 2023

The outlook for U.S. poultry exports in 2023 is cautiously optimistic, as the industry expects to increase its production by 2% and expand its market share in key regions such as Asia, Latin America, and Africa. The U.S. poultry industry will continue to face challenges from rising feed costs, trade disputes, and animal disease outbreaks, but will also leverage its strengths in product quality, safety, innovation, and sustainability to meet the growing global demand for chicken. The U.S. poultry industry will also seek to diversify its export portfolio by exploring new markets and developing new products that cater to different consumer preferences and needs.

References:

https://www.trademap.org/Country_SelProduct_TS.aspx?nvpm=1%7c%7c%7c%7c%7c01%7c%7c%7c2%7c1%7c1%7c2%7c2%7c1%7c2%7c1%7c1%7c1

http://faostat3.fao.org/mes/methodology_list/E

https://www.ers.usda.gov/data-products/food-availability-per-capita-data-system/loss-adjusted-food-availability-documentation/

https://www.ers.usda.gov/data-products/food-availability-(per-capita)-data-system/.aspx#26705

https://www.fas.usda.gov/poultry-meat-2019-export-highlights
https://www.nationalchickencouncil.org/industry/statistics/

http://www.fao.org/poultry/en/

https://www.internationalpoultrycouncil.com/

https://www.worldpoultry.net/

https://www.poultryworld.net/



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Essential Topics You Should Be Familiar With:

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