Poultry International - June 2017 - 21

PoultryInternational ❙ 21

goal is optimization, which may lead to solutions such as
being an importer and an exporter of poultry at the same
time. Being neither an exporter nor an importer would be
a highly unlikely optimization solution.

Why internet poultry companies?
Leading poultry companies of the 21st century will
need to not only use the internet but become internet

Retail weight US per capita
consumption of young chickens
120
100
Pounds

June 2017 ❙ www.WATTAgNet.com

60
40
20

25

00
19

19
50
19
75
20
00
20
25
20
50
20
75
21
00

0

Globalization and poultry competitiveness

U.S. chicken consumption is now 90 pounds
per capita and may never see 120 pounds per
capita.

Appropriate scale of operation for
the world, million broilers per year
1200
1000
Million broilers

800
600
400
200

0
20
3

0

20
20

20
1

0

00
20

19
9

80
19

70
19

60

0

19

Investment in new poultry production will increase
in those countries that are the most competitive and decrease in those countries that are the least competitive.
International competitiveness is not determined by performance because the technology of the world chicken
industry is trending toward convergence using best
industry practice. In other words, technology is readily
accessible on a worldwide basis.
The important issues in international competitiveness are grain supply, labor cost and local government
policies. Since feedstuffs represent the single largest
cost of live poultry production, they represent a huge
advantage to grain surplus areas and a problem for grain
deficit areas. Low labor costs also provide a significant
advantage. Grain exporting countries with low labor
costs are in a sweet spot for poultry production if the local business climate is friendly.
Assuming relatively free international trade in the future (a big assumption), there will tend to be less poultry
production in grain deficit areas and more poultry production in grain surplus areas. A concept that is likely to be
cast aside is that of self-sufficiency. A more appropriate

80

19

1950 to 80 pounds in 2000. No one should expect that
U.S. broiler consumption will continue to rise at that
rate. Consumption is now 90 pounds per capita and may
never see 120 pounds per capita.
The slowdown in the growth of mature domestic
markets will encourage poultry companies interested
in growth to develop a global marketing and production strategy. The likely strategy is expected to involve
a combination of strategic alliances and acquisitions in
other countries. There have already been changes in the
ownership of the U.S. chicken industry. JBS, a Brazilian
company, purchased Pilgrim's of the U.S., which at the
time was the largest U.S. chicken company. It can be
expected that just like global automobile companies,
global chicken companies will establish production in
several countries and market in dozens of countries.
They will be big companies; the apprporiate scale of
operation for surviving companies is likely to approach
1 billion chickens per year by 2030.

Looking forward 10 years, a firm that processes
at least 1 billion chickens per year, half the size
of Tyson Foods today, might be the minimum
size for a global poultry company.


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Table of Contents for the Digital Edition of Poultry International - June 2017

Poultry International - June 2017
Contents
Editor’s Comment
News
Nutrition & Feed Survey: Antibiotic-free animal feed production grows worldwide
Future of poultry welfare: What producers can expect
Global food companies will control the poultry industry
VIV Turkey creates international network platform
How China’s poultry industry is changing
Controlling poultry gut health for maximum performance
Biotin for poultry: An essential but expensive vitamin
6 processed chicken marketing strategies to boost sales
Marketplace
Advertisers’ Index
Poultry International - June 2017 - Poultry International - June 2017
Poultry International - June 2017 - Cover2
Poultry International - June 2017 - Contents
Poultry International - June 2017 - Editor’s Comment
Poultry International - June 2017 - 3
Poultry International - June 2017 - News
Poultry International - June 2017 - 5
Poultry International - June 2017 - 6
Poultry International - June 2017 - 7
Poultry International - June 2017 - Nutrition & Feed Survey: Antibiotic-free animal feed production grows worldwide
Poultry International - June 2017 - 9
Poultry International - June 2017 - 10
Poultry International - June 2017 - 11
Poultry International - June 2017 - 12
Poultry International - June 2017 - 13
Poultry International - June 2017 - 14
Poultry International - June 2017 - 15
Poultry International - June 2017 - Future of poultry welfare: What producers can expect
Poultry International - June 2017 - BB1
Poultry International - June 2017 - BB2
Poultry International - June 2017 - 17
Poultry International - June 2017 - 18
Poultry International - June 2017 - 19
Poultry International - June 2017 - Global food companies will control the poultry industry
Poultry International - June 2017 - 21
Poultry International - June 2017 - 22
Poultry International - June 2017 - 23
Poultry International - June 2017 - VIV Turkey creates international network platform
Poultry International - June 2017 - 25
Poultry International - June 2017 - How China’s poultry industry is changing
Poultry International - June 2017 - 27
Poultry International - June 2017 - 28
Poultry International - June 2017 - 29
Poultry International - June 2017 - 30
Poultry International - June 2017 - 31
Poultry International - June 2017 - 32
Poultry International - June 2017 - 33
Poultry International - June 2017 - Controlling poultry gut health for maximum performance
Poultry International - June 2017 - 35
Poultry International - June 2017 - 36
Poultry International - June 2017 - 37
Poultry International - June 2017 - Biotin for poultry: An essential but expensive vitamin
Poultry International - June 2017 - 39
Poultry International - June 2017 - 40
Poultry International - June 2017 - 41
Poultry International - June 2017 - 42
Poultry International - June 2017 - 43
Poultry International - June 2017 - 6 processed chicken marketing strategies to boost sales
Poultry International - June 2017 - 45
Poultry International - June 2017 - 46
Poultry International - June 2017 - Marketplace
Poultry International - June 2017 - Advertisers’ Index
Poultry International - June 2017 - Cover3
Poultry International - June 2017 - Cover4
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