Poultry Industry in Poland Faces Dual Threats: Disease and Overcapacity

The Polish poultry sector, which has only recently begun to recover from severe bird flu outbreaks earlier this year, is now grappling with new challenges posed by Newcastle disease, leading to a rapid deterioration in the veterinary landscape.

Newcastle Disease Outbreaks Strike Hard

By the end of May, two new Newcastle disease outbreaks were recorded, costing farmers an estimated 1.5 million poultry. The most significant incident involved the culling of 1.35 million hens at an industrial farm in the Mazovian province. This outbreak has been classified as the largest so far this year.

As of now, Poland has reported 30 outbreaks of Newcastle disease since January, culminating in total poultry losses of approximately 3.5 million heads. The ramifications include substantial losses for farmers and poultry processors alike. Notably, Wojciech Ściana, deputy president of Wipasz, a leading poultry manufacturer, indicated that their supply chain was significantly disrupted following the initial outbreak in the Podlaskie province.

“The biggest concern is the erosion of customer trust, which causes the entire supply chain to unravel,” Ściana expressed in an interview.

Overcapacity: A Long-Standing Issue

The current health crises have highlighted a persistent challenge of overcapacity within Poland’s poultry slaughtering and processing sector. Ściana noted that over recent years, processing capacities have expanded beyond the available supply of broilers, creating an unbalanced industry framework.

“When a disease strikes and natural limitations on poultry availability occur, this exacerbates the existing problem,” he added. This imbalance results in prolonged downtimes for slaughterhouses and processors across the nation.

Such downtimes adversely affect profitability, further impairing the ability of Polish poultry processors to reinvest in their operations. “Competitiveness has become our most significant challenge, deteriorating over the past 5 to 6 years,” Ściana acknowledged, emphasizing that the immediate focus for the company is merely to remain operational.

Mercosur Deal: A New Challenge

Amid these existing pressures, Polish poultry farmers now worry about the implications of the Mercosur trade agreement between the European Union and Mercosur countries. This deal is anticipated to heighten competition from South American poultry producers, potentially resulting in a further reduction of the market share for Polish farmers.

According to Ściana, Poland, as a leading exporter in the European market, could suffer the most under the new competitive landscape. He reiterated Poland’s stance that all importers must comply with the same rigorous standards upheld by European farmers to gain access to the European poultry market.