Case Study: Steady poultry growth in Lithuania

05-01-2016 | | |
Poultry in Lithuania
Poultry in Lithuania

Lithuania is the largest poultry meat producer among the Baltic States with production amounting to 99,700 MT in 2014, 4% higher than in 2013. It is expected that production will continue to grow through 2015 and 2016 because of favourable feed prices, continuing domestic demand and growing exports.

Poultry meat is the main meat produced in Lithuania. In 2014 the share of poultry meat of total meat production amounted to 41% and the self-sufficiency index in production of poultry meat was 119%.

Number of birds

As of January 1, 2015 the number of poultry amounted to 10.2 million birds compared to 9.7 million a year earlier. In 2014 13% of poultry was raised in back-yard flocks and the rest in commercial farms. In 2014 50.2 million broiler chicks were hatched, a 4% increase compared to 2013. In 2014 the number of organic poultry in Lithuania decreased by 1.2% to 6,170 birds.

Vilnius and Kaisiadorys is one of the largest poultry producers and processors in Lithuania. The Vilnius and Kaisiadorys’ poultry farms and their subsidiaries together have 175 chicken houses with an annual production of 32 million broilers. Vilnius and Kaisiadorys poultry farms sell monthly 6,000 MT of poultry meat and products, 47% of which is exported. The monthly turnover of the company which employs 2,100 people, is around US$12 million (€11.13 mlnl).

Fully integrated poultry suppliers

Another large scale producer and processor of poultry meat is Nematekas. The company has been operating for 20 years on the Lithuanian market. It is a fully integrated business with production and broiler processing sites based in Lithuania, supplying many company branded products into the Baltic States, Scandinavia and Western Europe.

In February 2014 the distributor of US Cobb in Scandinavia and the Baltic States, Blenta, signed an agreement with Lithuanian company Dovainoniu Paukstynas (a subsidiary of the Nematekas food group) to receive 100% of their parent stock supply from Cobb.

Net exporter of poultry meat

Lithuania is a net exporter of poultry meat. In 2014 Lithuania’s exports amounted to 48,235 MT, 4% higher than in 2013. Although in the first 9 months of 2015 the volume of exports increased by another 4%, due to the decline in prices within the EU, the value of exports decreased by 19% and amounted to US$83 million (€76.96 mln).

The main export destinations within the EU are the Netherlands, Latvia and Estonia. Exports outside of the EU are directed mainly to Hong Kong and Vietnam. In September 2014 Hong Kong approved imports of poultry meat and poultry products from Lithuania, which concluded 2 years of negotiations. In 2015 Lithuania started for the first time to export poultry meat to Ukraine. In the first 9 months of 2015 exports to Ukraine amounted to 4,621 MT.

Poultry meat and egg consumption

In 2014 average per capita poultry meat consumption in Lithuania amounted to 26 kilogrammes, 13% more than in 2013 and twice as much as a decade ago. Average annual consumption of eggs in 2014 amounted to 275 pieces per capita compared to 261 pieces in 2013.

In 2014 Lithuania produced 806 million eggs, 5% more than in the previous year. Production of eggs from back-yard flocks accounts for 22% of total egg production in Lithuania.

[Source: USDA]

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