Poultry production / Worldwide

Worldwide

Global poultry meat and egg production as well as trade with poultry products have shown a
remarkable dynamic during the last 35 years. Between 1970 and 2005 poultry meat and egg
production increased faster than beef and veal or pigmeat production. This is especially
true for poultry meat. In 1970, poultry meat reached only a production volume of 15.1 M. t whereas 38.3 M. t of pigmeat were produced worldwide. In 1995 poultry meat surpassed beef and veal production, in 2005, the production volume of poultry meat was about 21 M. t higher. A comparison with pigmeat shows that for both meat types an increase of about 65 M.t could be realised. The gap in the production volume is still about 20 M. t, smaller, however, than in the late 1980s when it was as large as 28. M. t. Hen egg production more than tripled in the analysed time period and within a few years the production volume will be higher than that of beef and veal if the growth rates remain fairly constant.

Development of global meat and hen egg production between 1970 and 2005; data in 1,000t, (FAO)
Year   Beef and veal Pigmeat   Poultry meat   Hen eggs
1970   38,349 35,799   15,101   19,538
1975   43,724   41,674   18,684   22,232
1980   45,551   52,683   25,965   26,215
1985   49,285   59,973   31,206   30,764
1990   53,363   69,873   41,041   35,232
1995   54,207   80,091   54,771   42,857
2000   56,951   90,095   69,191   51,69
2005   60,437   102,523   81,014   59,233
                 
Increase (%)   57.6   186.4   436.5   203.2

Poultry meat production


The growth of poultry meat production has been very imbalanced. North and Central America as well as Europe lost market shares in the analysed time period, Asia and South America could increase their contribution to global production considerably.
In 1970, North and Central America, Europe, and the USSR had a share of more than 71 % of the global production volume, Asia and South America of less than 24 %. In 2005, the latter contributed almost 50 % to global poultry meat production. The highest absolute growth rate can be observed in Asia with an increase of almost 25 M. t between 1970 and 2005, followed by South America with 12 M. t. The highest relative growth rate shows South America. Quite obviously, the centre of poultry meat production shifted from North and Central America to South and East Asia, and within a few years, the production volume in South America will surpass that of Europe.

The changing contribution of the continents to global poultry meat production between 1970 and 2005; data in % (FAO)
Continent   1970 1990 2005
Africa   4.0 5.0 4.2
Asia   17.9 24.4 34.0
Europe   28.1 20.6 16.4
USSR   7.1 8.0 -
NC America   36.2 31.3 28.4
S America   5.8 9.5 15.7
Oceania   0.9 1.2 1.2
         
World   100.0 100.0 100.0

The ten leading countries in poultry meat production in 1970 and 2005 (FAO)

Country 1970 Production (1,000t)   Share (%)   2005 Country Production (1,000t) Share (%)
               
USA 4,645   30.8   USA 18,538 22,9
USSR 1,071   7.1   China 14,689 18.1
China 971   6.4   Brazil 8,895 11.0
France 637   4.2   Mexico 2,272 2.8
Italy 626   4.1   France 1,971 2.4
UK 578   3.8   India 1,965 2.4
Spain 499   3.3   UK 1,573 1.9
Japan 490   3.2   Spain 1,341 1.7
Canada 447   3.0   Indonesia 1,268 1.6
Brazil 378   2.5   Japan 1,24 1.5
10 countries 10,342 *   68.4   10 countries 53,752 66.3
World 15,101   100.0   World 81,014 100.0

* Sum does not add because of rounding

A comparison of the ten leading countries in poultry meat production in 1970 and 2005 further documents the regional shift. In 1970, only two of the ten leading countries were developing countries, and two, China and Japan, were located in Asia. With a share of almost 31 %, the USA dominated this branch of poultry production. In 2005, five of the ten leading countries were developing countries and four were located in Asia. The United States were still in the top position with a share of 22.9 %, but China and Brazil now ranked as number two and three. The regional concentration slightly decreased from 68.4 % to 66.3 %, a result of the growing importance of poultry meat production in an increasing number of countries.


Hen egg production

Between 1970 and 2005 growth in egg production, too, has been very imbalanced. The only winning continent was Asia, whereas Europe and North and Central America lost considerable
amounts of their former market share. In 1970, Europe was still the leading continent in egg production but lost this position in the early 1980s. In 2005, Asia contributed over 60 % to the global production volume, the share of Europe fell to 16.8 % and that of North and Central America to 13.6 %. South American countries, which had been able to gain higher market shares until 1990, have not been able to hold their position in spite of an almost continuous growth of the production volume.


The changing contribution of the continents to global hen egg production between 1970 and 2005; data in % (FAO)
Continent   1970   1990   2005
Africa   3.0   4.4   3.7
Asia   23.7   39.2   60.4
Europe   30.9   20.1   16.8
USSR   11.5   13.0   -
NC America   25,3   16.4   13.6
S America   4.3 6.3   5.1
Oceania   1.2   0.7   0.4

* Sum does not add because of rounding

A comparison of the ten leading countries in egg production in 1970 and 2005 reveals that the
regional concentration is higher than in poultry meat production. In 2005, the ten leading countries contributed 72.4 % to global egg production. Whereas in 1970 six European countries were to be found in leading positions, only one was left in 2005, France. The five positions are now occupied by India, Mexico, Brazil, Indonesia, and Turkey. It is worth mentioning that in 2005 almost half of the global egg production was located in China, India, and Japan. In 1970, only one of the ten leading countries, China, was a developing country, in 2005, already six of the top ranked countries were developing countries according to the classification of the FAO. Four of them were located in Asia and two in Latin America. This further documents the regional shift of egg production from Europe to South and East Asia.

The ten leading countries in hen egg production in 1970 and 2005 (FAO)

Country   1970 Production (1,000t) Share (%) Country 1950 Production (1,000t) Share (%)
USA   4,053 20.7 China 24,348 41.1
USSR   2,248 11.5 USA 5,33 9.0
Japan   1,766 9.0 India 2,492 4.2
China   1,533 7.8 Japan 2,465 4.2
Germany   1,162 5.9 Russia 2,054 3.5
UK 892 4.6 Mexico 1,906 3.2
France   658 3.4 Brazil 1,56 2.6
Italy   607 3.1 France 1,045 1.8
Spain   464 2.4 Indonesia 876 1.5
Poland   389 2.0 Turkey 830 1.4
10 countries   13,722 * 70.5 10 countries 42,906 * 72.4
World   19,538 100.0 World 59,233 100.

*Sum does not add because of rounding


Poultry meat exports and imports

A closer examination of the changing contribution of the various poultry meat types to global
exports reveals that chicken meat had a share of over 92 % of global poultry meat exports in 1970, it decreased to 75.4 % in 2004. Turkey meat, which had been able to gain market shares until 2000, was not able to hold the reached position. Instead, value added canned and further processed products could continuously increase their contribution to the total export volume.
The export volume of poultry meat increased from 0.5 to 9.7 M. t between 1970 and 2004. This growth was very imbalanced. In 1970, Europe dominated global poultry meat exports with a share of almost 84 %, followed by North and Central America. It is remarkable that in the following decades Europe lost its former dominating position. In 2004, European countries were still in a leading position but were closely followed by the Americas. In contrast to production, Asian countries are only playing a minor role in poultry meat exports. These statements are too general, however. A closer look at the leading exporting countries will make it possible to identify the winners and losers.


The ten leading poultry meat exporting countries in 1970 and 2004 (FAO)

Country   1970 Exports (1,000t) Share (%)   Country   2004 Exports (1,000t)   Share (%)
The Netherlands   201 38.6   USA   2,652   27.3
USA   65 12.5   Brazil   2,628   27.1
Hungary   62 11.9   The Netherlands   695   7.2
Denmark   49 9.4   France   650   6.7
France   31 6.0   Belgium   392   4.0
Bulgaria   27 5.2   China   333   3.4
Poland   18 3.4   Thailand   319   3.3
China   13 2.5   Germany   318   3.3
Germany   7 1.3   United Kingdom   275   2.8
Italy   3 0.6   Denmark   152   1.6
10 countries   476 91.4   10 countries   8,414   86.8
World   521 100.0   World   9,697   100.0
In 1970, The Netherlands were the leading poultry meat exporting country with a share of almost
39 % of The global export volume, followed by the USA and Hungary. It is worth mentioning that in 1970 eight of the ten leading countries were located in Europe, four of them were EC member states and three belonged to the former COMECON. In 2004, the regional concentration of poultry meat exports was still very high, for almost 87 % of the export volume was contributed by the ten leading countries. The composition of the ten top ranked countries was, however, quite different from that in 1970. The USA and Brazil were ranked as number one and two with an almost identical export volume. Together they had a market share of 54.4 %. It is remarkable that Brazil, which was not to be found among the top ten countries in 1970, ranked as number 2. In 2005, Brazil even surpassed the USA. Six of the ten leading countries were EU member states with The Netherlands in third place. Thailand, which was also not ranked among the top exporting countries in 1970, ranked as number five with an export volume of 597,163 t in 2003 and it was only because of the outbreak of Avian Influenza that its exports decreased to 319,336 t in 2004. The data show the growing importance of North and South American countries in poultry meat exports. The spatial pattern in the Americas is very different from that in Europe. Whereas a more or less monocentric spatial pattern with one dominating country in North as well as in South America can be observed, Europe has developed a more polycentric pattern.

Germany was the leading importing country in 1970. Almost 50 % of all poultry meat that reached the world market was imported by this country, and The Netherlands were the main supplier. Four of the top ten ranked importing countries were located in Asia and one in Central America. In 2004, the situation had changed completely. Russia was the leading importing country with a share of 12.6 %, followed by China and Japan. Germany was in fifth place with a share of 6.3 % of the global import volume. The regional concentration of imports decreased from 74.1 % to only 62.6 % in the analysed time period. This shows that poultry meat has become an attractive and affordable meal in many more countries. This is also documented by a more even distribution of the imports.


Hen egg exports and imports

In contrast to poultry meat, where 12.0 % of the production volume was exported in 2004, only 1.8 % of the produced hen eggs reached the world market. Due to the fact that it is difficult to transport shell eggs over long distances, most of the eggs are traded within comparatively
small regions.
Egg exports increased from about 400,000 t in 1970 to over 1 M. t in 2004. The share of developing countries fluctuated between 10.5 % and 24.5 %. This is mainly due to the fact that in some years the demand grew faster than the production volume.
In 1990 European countries contributed almost 82 % to the global export volume, from then on, it decreased to about 68 % in 2004. In the same time period, egg exports of Asian as well as North and Central American countries increased. A detailed analysis on the basis of single countries will make it possible to identify countries which were able to gain and those which lost market shares.
A closer look at the composition of the ten leading hen egg exporting countries in 1970 and 2004 reveals that the regional concentration has been very high over the whole time period. In 1970, The Netherlands and Belgium alone contributed 41.5 % to the global export volume. In that year, eight of the top ranked countries were located in Europe, two in Asia. It is worth mentioning that four of the European countries belonged to the former COMECON.
In 2004, The Netherlands and Spain ranked as number one and two, together they contributed
35.4 % to the global export volume, followed by China. Several countries, which were not to be found in the top ranks in 1970, reached a leading position in 2004. This is especially true for Spain, the USA, Malaysia, and India. The composition of the top ranked countries further documents the dominating role which Europe and Asia play in hen egg trade.

The ten leading hen egg exporting countries in 1970 and 2004 (FAO)


Country   1970
Exports
(1,000t)
Share
(%)
  Country 2004
Exports
(1,000t)
Share
(%)
Belgium/Lux.   88,088 21.8   The Netherlands 265,288 25.5
The Netherlands   79,682 19.7   Spain 103,257 9.9
China   33.531 8.3   China 86,534 8.3
Bulgaria   27,514 6.8   Belgium 77,993 7.5
Hungary   22,828 5.7   USA 72,018 6.9
Poland   22,391 5.5   Germany 63,044 6.1
Romania   17,333 4.3   Malaysia 54,596 5.3
Finland   16,793 4.2   India 48,582 4.7
Lebanon   14,604 3.6   France 39,241 3.8
Germany   11,178 2.8   Belarus 31,196 3.0
10 countries   339,942 82.7   10 countries 841,749 81.0
World   403,618 100.0   World 1,038,442 100.0
In spite of the increasing demand, the share of developing countries of global hen egg imports
has been fluctuating between 24 % and 35 % from 1970 to 2005. This documents on the one hand the increasing production volume in several developing countries, on the other the fact that most of the consumed eggs stem from domestic production.
Egg trade is to a high degree a phenomenon between European as well as Asian countries. Nevertheless, Africa has become a more attractive market during the last decade. It is interesting that South American countries are not playing a major role in egg trade so far. North and Central American countries are trading eggs mostly between the three NAFTA members.
A more detailed analysis of the leading egg importing countries in 1970 and 2004 shows that the regional concentration decreased from almost 81 % to 73 %. Quite obviously, an increasing number of countries imports shell eggs. Germany has been the leading egg importing country over more than three decades. In 1970, almost one third of all traded shell eggs were imported by this country. Even though the share decreased to 25.2 % in 2004, Germany was still by far the largest importer. It can be expected that the import volume will grow rapidly from 2012 on if the German banning of conventional and enriched cages will not be altered. The dominating role that European countries have been playing in egg trade is documented by the fact that in 1970 and 2004 seven of the ten leading countries were located in this continent. What impacts the full implementation of directive 1999/74/EU, which bans conventional cages from 2012 on and demands enriched cages in new facilities from 2003 on, will have on egg trade is a still open question. It can, however, be expected that the EU will at least from 2012 on no longer be an egg surplus region.