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ABC News
Business

Australia's chicken meat industry facing summer dip in supply, forecast increase in demand

A shortage of chicken meat is still affecting some retailers but there are signs the situation is easing.

Nando's, Aldi and Woolworths have been caught up in what Joanne Sillince from the Australian Chicken Grower's Council (ACGC) described as a possible "seasonal" downturn in chicken supply over January.

A Woolworths spokesperson said the supermarket chain had experienced a "reduced availability of fresh chicken marketwide".

"However, our supply has continued to improve in recent weeks," the spokesperson said.

"We continue to have fresh chicken available for our customers in store and we're working closely with our suppliers to meet our customers' needs."

The ABC understands Aldi was also experiencing supply challenges across the poultry industry but was working hard to maintain stock for customers.

A note on Nando's website explains the South African spicy chicken fast food chain was "seeing some not-so-cheeky disruption to our supply chain".

"That means some of your fave items may not be available and some restaurants may not be open as often as we'd like," the site read.

Chicken meat demand to rise

However, an Australian Chicken Meat Federation spokeswoman said the ACMF was "not aware of any broader industry supply issues" but that "localised supply disruptions or pockets of high consumer demand may occur from time to time and are managed accordingly by commercial participants".

ACGC acting chief executive Joanne Sillince said there was often a "very slight drop" in chicken production over summer because hot weather could reduce laying and slow growth in poultry.

"Having said that, ACMF has put on the record that with the projected rise in Australia's population over the next 20 years, we will need at least 330 more chicken barns to keep up with future demand," she said.

"Also worth noting is that Australia's export of chicken meat is minute as a percentage of production — we are hoping to drive some export markets in the future, which will further fuel the need for more chicken barns."

But Dr Sillince maintained there was "plenty of chicken on supermarket shelves" and the meat also was not subject to conditions that caused price fluctuations in other animal production industries.

She said chicken meat was the least expensive meat in Australia by some margin.

"Show me another meat where you can still feed a family of four big appetites with around $10 worth of meat," Dr Sillince said.

"It's not like red meat where you get really significant changes in supply depending on the season — from a glut to real shortage of stock, and dependence on grain during drought at the exact time that grain prices are at their highest.

"[With chicken], you have negotiated your grain price up to a year in advance. You know your hatch, you know your bird numbers and even the weights at which day of production to within a very small range."

Dr Sillince said the change in gas, electricity and grain prices due to flooding was more likely to affect prices in the short to medium term.

However, she said, that was affecting all meats and all groceries.

The Australian Bureau of Agriculture and Resource Economics (ABARES) forward estimate for poultry meat production in 2023–24 is 1,356 kilotonnes, or 47.6kg per person, up from 1,267 kilotonnes in 2019–20.

ABARES report found chicken meat represented more than 46 per cent of all meat consumed in Australia and 68 per cent of Australians ate chicken meat as part of a meal at least twice a week.

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