Prepared or preserved poultry meat or offal market in MERCOSUR

Earlier Report Observations

The MERCOSUR bloc established harmonized standards for additives in poultry meat products through a technical regulation approved in 2018, which was followed by stricter sanitary controls for importing hatching eggs and day-old chicks in 2019. This regulatory foundation supported market integration, with volume growing from 145.3 thous. t in 2018 to 161.5 thous. t in 2020.

Market dynamics shifted from 2021, driven by poultry's competitive price against red meat and aggressive export expansion strategies, particularly from Brazil. Production rose to 258.3 thous. t in 2021, but increased exports slightly reduced domestic availability. In 2022, high production costs and soaring feed prices pressured producers, while the implementation of a zero-tariff export quota to the European Union under the MERCOSUR-EU agreement stimulated overseas sales. The ongoing impact of the COVID-19 pandemic continued to favor poultry consumption as an affordable protein. Consequently, market volume fell to 149.6 thous. t in 2022, but its value jumped to 544.8 mln $ due to significant price increases.

By 2023, the MERCOSUR-EU agreement continued to provide export opportunities, but persistent high input costs and global sanitary challenges like avian influenza constrained production. Growing consumer demand for processed and 'ready-to-cook' poultry products, supported by packaging innovations, further shaped the market. Volume declined to 143.4 thous. t, while market value reached 552.5 mln $, reflecting sustained cost pressures and a shift toward higher-value products.

Production prepared or preserved poultry meat or offal in MERCOSUR

In kind, 2017-2020, K t

Top producers of prepared or preserved poultry meat or offal, 2017-2020

World map of production of prepared or preserved poultry meat or offal, 2017-2020

After two consecutive years of decline, MERCOSUR's production of prepared or preserved poultry meat or offal rebounded in 2020. The volume reached 254.1 K t, marking a modest year-over-year increase of 3.9%. Production had previously hit its lowest point in 2019 at 244.4 K t, which also saw the largest decline of 1.5% during the period.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output value of prepared or preserved poultry meat or offal in MERCOSUR was 721.9 M $ US, reflecting a gradual year-over-year decline of 3.2%. The value peaked in 2019 at 746.1 M $ US, with the largest increase of 4.8% recorded that year. The lowest value occurred in 2018 at 712.2 M $ US.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports prepared or preserved poultry meat or offal from MERCOSUR

Exports in kind, K t

Exports of prepared or preserved poultry meat or offal from MERCOSUR declined for the third year in a row in 2020, reaching 95.6 K t, down 2.0% from 2019. Over the period from 2017 to 2020, exports fell by 47.1%, which translates to an annualized decline rate of 19.1%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, the United Kingdom, the Netherlands, and Germany were the top destinations for MERCOSUR's prepared or preserved poultry meat or offal exports in volume terms. Together, they accounted for 70.0% of total exports, with the United Kingdom at 28.5%, the Netherlands at 23.5%, and Germany at 18.0%.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

The value of prepared or preserved poultry meat or offal exports from MERCOSUR dropped for the third consecutive year in 2020, totaling 271.7 M $ US, an 8.8% decrease from the previous year. Between 2017 and 2020, export value declined by 48.1%, equivalent to an annualized rate of 19.7%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

In value terms, the United Kingdom, the Netherlands, and Germany formed the core market cluster for MERCOSUR's prepared or preserved poultry meat or offal exports from 2017 to 2020. They collectively represented 78.0% of total export value, with the United Kingdom at 32.7%, the Netherlands at 27.7%, and Germany at 17.6%.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports prepared or preserved poultry meat or offal to MERCOSUR

Imports in kind, K t

Imports of prepared or preserved poultry meat or offal into MERCOSUR showed an unstable trend from 2017 to 2020. The volume peaked in 2018 at 6.1 K t, with the largest increase of 436.9% that year, before falling to a low of 0.6 K t in 2019, marking the largest decline of 89.9%. In 2020, imports rebounded sharply to 3.1 K t, a 403.0% increase from 2019, resulting in a 9.9-fold fluctuation between the peak and trough.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

Imports of prepared or preserved poultry meat or offal into MERCOSUR declined for the second consecutive year in 2020, totaling 12.6 M $ US, down 4.9% from 2019. Over the 2017-2020 period, import value decreased by 33.6%, with a compound annual growth rate of -12.8%. The value reached its highest point in 2018 at 22.8 M $ US, which also saw the largest increase of 20.4%, while 2019 recorded the largest decline of 42.0%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

From 2017 to 2020, Spain was the leading source of prepared or preserved poultry meat or offal imports into MERCOSUR in value terms, accounting for 0.6% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020