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UK Poultry Industry Must Increase Consolidation and Efficiency Levels

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UK Poultry Industry Must Increase Consolidation and Efficiency Levels

UK Poultry Industry Must Increase Consolidation and Efficiency Levels
January 30
14:42 2012

Despite operating in one of the highest value-add markets in the EU, the UK poultry industry is suffering as a result of high feed prices, limited volume growth and oversupply, according to Rabobank. Increases in domestic demand merely reflect population growth, whilst the UK’s export industry still underperforms by failing to capitalise on a strengthened competitive position, for example depreciation of sterling and new marketing standards for fresh poultry.

Oversupply has placed retailers in the driving seat of the value chain, points out Rabobank. Players without a preferred supplier relationship find themselves having to fight for retail tenders based on price alone (or supplying ingredients to companies with retail access), exacerbating the high levels of competition that arise from feed costs.

Rabobank further suggests that in order to thrive, the UK poultry industry must increase consolidation levels to more closely match that of the retail poultry market; increase efficiency in the supply chain and the rate of structural change; and improve supply discipline.

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