Poultry

Poultry industry

Poultry is one of Marel’s four key business segments. We are the global market leader in poultry processing equipment, systems, services and software for broiler, turkey and duck processors worldwide. Our Poultry segment contributed EUR 832 million in revenues in 2022, or 49% of total revenues, translating to an EBIT margin of 14.2%.

The consumer value of the poultry market is estimated to be around EUR 400 billion, while poultry processing equipment sales are estimated around EUR 4 billion.

Marel's presence in the poultry value chain

New solutions

In partnership with our customers, we transform the poultry industry by developing innovative solutions that anticipate market demands. Added customer value, sustainability and digital connectivity are the focus areas for our innovation efforts when designing new products.

ATHENA automates fillet harvesting

ATHENA is a fully automated system for deboning chicken breast caps. It can handle a wide range of weights, shapes and sizes, and offers fully automatic fillet harvesting with high yield and productivity. Equipped with smart software for digital control, its settings can be automated, making it a great option when human operators are in short supply. The system can be controlled via the HMI (human-machine interface) screen or a remote wireless device, making it easy to change recipes or product types. The system dynamically adapts its settings to handle each breast cap, and all modules adjust accordingly.

ATHENA ensures full traceability by not only conveying breast caps but also their accompanying data. Information on flock, recipe and final destination stays with each fillet, passing automatically to integrated downstream processes such as portioning or packing. ATHENA also positions each piece of breast meat individually onto the belt that feeds these processes, eliminating the need for repositioning and operator contact with the meat. This improves food safety and reduces dependence on labor.

Greater efficiency with Breast Meat Value Optimization

The Breast Meat Value Optimization solution is designed to achieve the best match between incoming raw material and production orders while minimizing giveaway. It combines state-of-the-art technology with real-time process data to grade and distribute breast fillets on a conveyor belt. The process includes a product weigher, IRIS Fillet Inspector, SystemFlex Distributor and ProFlow Breast Meat software.

The absence of human contact during meat handling greatly enhances both food safety and quality. ProFlow Breast Meat software connects orders with all individual product data, directing each fillet automatically to its optimal destination. Other building blocks such as SensorX, I-Cut122 TrimSort and RoboBatcher Flex can be added to ensure the most profitable use of all fillet products.

Nuova-i surpasses expectations

The Nuova-i eviscerator has emerged as a highly successful product, with initial installations exceeding expectations. As a result, leading processors eagerly await the opportunity to secure the technology for themselves. The Nuova-i eviscerator represents a technological leap in the field of evisceration, bringing it into the digital age.

Equipped with advanced digital connectivity features, the Nuova-i offers optimal performance based on data-driven insights, all while adhering to the highest standards of hygiene. This means that processors can expect exceptional yields and quality in eviscerated carcasses and giblets, as well as superior pack removal and uniform, compact viscera packs.

The Nuova-i is particularly user-friendly, as the settings automatically follow the recipe entered into the machine’s HMI display. Integrated SmartBase software makes the Nuova-i a truly connected solution, providing real-time insight into the health of the machine.

Connecting and optimizing with IMPAQT

Our newly introduced IMPAQT (Intelligent Monitoring of Performance, Availability and Quality Trends) software continues to gain attention from poultry processors around the world. IMPAQT assesses real-time availability, performance and quality at various stages of processing, and connects this information at line and process levels. The software provides a seamless connection to intelligent systems such as Nuova-i, ATLAS RFID and ATHENA. Our experts use this data to tell customers how efficiently their process is running, both technically and technologically, and show them in detail where improvements can be made.

We have rolled out our Base, Advanced and Premium software packages to offer customers a range of insights such as monitoring uptime and process optimization support, where IMPAQT makes proactive improvement proposals. Strong interest in the IMPAQT software has resulted in the sale of 20 systems, 10 of which are subscription-based.

A milestone in ATLAS sales

We developed the ATLAS live bird handling system with sustainability as a key priority, resulting in a solution that reduces truck movements and ensures animal wellbeing. In 2022, we sold the 50th ATLAS system since its launch in 2016. This is a remarkable achievement, as it reflects the readiness of processing plants to adopt and invest substantially in a system that has a profound impact on their operations. It also demonstrates that customers are considering growing their businesses once market confidence returns.

SmartStack containers enabled with radio frequency identification (RFID) chips provide a wealth of information and greatly improve traceability for ATLAS system users. Typically, the arrival of live birds at a processing plant involves a lot of paperwork, forms and handwritten notes, which can lead to errors. Marel Innova Flock Intake software, interacting with the RFID chips, transforms this process by minimizing the risk of errors, streamlining processes and providing end-to-end traceability.

1000mm Coating Line meets growing demands

Marel’s new 1000mm Coating Line is designed to meet the growing demand for convenience food. As processors are being asked to make a greater variety of products at higher volumes than their production lines can handle, they require an automated coating solution that meets their specific needs. The 1000mm Coating Line delivers unmatched coating quality and can handle all types of coating, including homestyle, tempura, coarse or breadcrumb.

The 1000mm Coating Line has excellent hourly throughput thanks to the incorporation of the new 1000mm Active Flour Applicator, Active Batter Applicator and Active Tempura Applicator, which all feature very wide belts, and are especially robust and fail-safe. The line can be customized to meet the needs of the customer’s market, with the option to include a RevoCrumb for precise coating or a RevoBreader for quick and easy switching between homestyle and standard products.

Digital Service Development and Delivery team supports customers

After committing to the digital journey and establishing initial machine connections, our customers have shown a strong tendency toward expanding their digital connectivity. To facilitate connectivity growth, we have launched a new digital service department.

Digital Service Development and Delivery is staffed by a dedicated team and is the primary point of contact for customers who have subscribed to our software packages, particularly IMPAQT. The department proactively reaches out to IMPAQT customers, sending them advice on how to maintain their equipment or alerts if performance drops below a certain level. The department also provides other services and serves as a hub for customers seeking to learn how to interpret data from their systems, such as Equipment Monitoring, Innova PDS and SmartBase.

Did you know?

A year of reconnection

In early 2022, the poultry industry began to recover as restrictions on travel and in-person meetings were lifted. Marel sales and service staff were able to visit customers once again, and industry professionals could attend events such as the IPPE (International Production & Processing Expo) exhibition in Atlanta. This provided a much-needed opportunity to reconnect face-to-face with our customers from North and South America for the first time in two years.

The highlight of the Poultry segment’s reconnection efforts was VIV Europe in Utrecht, the Netherlands, where many attendees visited the Marel booth. The atmosphere was dynamic, and the reactions were overwhelmingly positive as we showcased cutting-edge poultry processing solutions aligned with our mission to connect, innovate and transform. Attendees expressed significant interest and a willingness to invest in these products, making it a successful exhibition. The event also marked the debut of Marel and PMJ, acquired in 2021, as a united provider of duck processing solutions.

Key projects

Effective innovation requires close collaboration with our valued customers. By actively engaging with the conditions on the factory floor and gathering feedback, we can tailor our equipment and software to meet the demands of the poultry industry. The relevance and performance of our solutions can only be confirmed through the feedback and experiences of our customers.

In 2022, the Middle East was a key territory where we secured some substantial projects. In addition to the immense Etihad project in Iraq, similar in scale to Bell & Evans and Prestage in the US, we had large orders from Tanmiah and Arasco in Saudi Arabia, Al Rebass in Iraq and Al Sahl in Libya. Large projects in other regions included Schildermans in Belgium and Avicarvil in Romania.

Schildermans is fully prepared for the future

When poultry processor Schildermans planned to re-equip its plant, based in Bree, Belgium, it selected Marel as the new supplier. The company remains committed to maintaining a throughput of 8,000 birds per hour (bph) to ensure a focus on quality and freshness. Managing Director Eloy Schildermans wants to be prepared for a future in which corporate social responsibility (CSR), employee engagement and sustainability are at least as important as growth, as drastic changes are expected in the poultry supply chain.

“We looked closely at the new technologies launched since we last re-equipped in 2014. Marel convinced us that their innovative technologies handle the product better. Examples are the anatomic leg processor, which gives us more yield and less damage, and automatic giblet harvesting, where Marel really leads the field,” says Schildermans. “If we look to the future, we feel that Marel, with its innovative solutions, intelligently connected technological options and management of line data, is best placed to transform our operations and take us forward.”

Avicarvil will be Romania’s main protein producer

Avicarvil, a company within the Carmistin Group, is a leading poultry producer, processor and retailer in Romania. The company has an annual farming and processing capacity of over 30 million chickens and plans to double this capacity by building a greenfield processing plant. Avicarvil has chosen Marel as its partner in this ambitious project.

In Valcea County, Avicarvil intends to build the most up-to-date poultry processing plant in Southeastern Europe. Covering an area of 25,000 m2, it will be the largest chicken meat production in Romania. Andrei Brumaru, Executive Director of the Carmistin Group, explains, “Given our sales forecast, we need to expand. At the same time, we must be internationally competitive by producing more chicken of a higher quality. For the best results and to optimize the return on our investment, we took the decision to work with Marel.”

Customer story:

Etihad, a greenfield project without boundaries

In March 2022, Marel and Iraqi company Etihad reached an agreement for the construction of a monumental project. Located near the city of Karbala, the project will be a greenfield processing plant with two fully equipped 15,000 bird-per-hour (bph) lines from Marel. The first phase of the project includes all equipment from live bird handling to air chilling.

To ensure the highest quality, Etihad recommended a single-layer air chilling configuration, which prevents products from dripping on one another. As such, two massive buildings are necessary to accommodate the separate 15,000 bph air chilling lines—a requirement that posed no issue for Etihad.

Later in the year, we closed follow-up orders for secondary and further processing. Etihad’s vision is ambitious and expansive, encompassing 1,200 chicken farms covering an area of 350 km2. This project is Marel’s largest ever in terms of surface area.

Sustainability in the poultry industry

Poultry processors are constantly seeking new and better ways to run their plants more sustainably. Marel takes great pride in developing solutions that enable our customers to create value in a safe and environmentally responsible manner.

IMPAQT equals sustainability

IMPAQT software improves sustainability measures by optimizing processing, allowing processors to derive the maximum value from their broilers. This means fewer rejects, less B-quality product, less waste and more efficient utility usage. In addition, optimal process harmonization ensures that no water is wasted and no energy is lost. IMPAQT is a good example of how we strive for excellence in resource management and operational efficiency.

Energy saving

Currently, our poultry customers are primarily concerned with saving energy, driven not only by environmental considerations but also by the high cost of energy. They are therefore particularly interested in the AeroScalder, an innovative solution that uses warm, moistened air to scald products, eliminating the need to immerse products in hot water in a conventional scalding tank. In this way, the AeroScalder transforms the scalding process, reducing water usage by 75% and energy consumption by 50%.

Water saving

Poultry processors are showing more and more interest in water treatment, a trend that was particularly noticeable in 2022. It is now becoming standard practice for us to include water treatment in quotations for poultry projects.

Processors try to keep water usage per bird processed as low as possible, with an average figure in Europe between 5 and 8 L. Marel plays an essential role in helping poultry processors keep a close eye on this aspect of the process. However, balancing the need for low water usage and costs with adequate cleaning water for product hygiene can be a delicate issue. For instance, in Brazil, the government has enacted legislation specifying a minimum amount of water to be used per poultry product. We work closely with our customers to ensure that water usage remains within legal and industry standards, while also being mindful of cost saving measures.

Consolidating markets

During the pandemic, poultry processors worldwide put their large investments on hold and invested in automated, laborsaving solutions only. This behavior continued in 2022 due to the worldwide workforce shortage. Slowly, however, Marel began to see an increase in business, particularly in the form of larger poultry projects valued at over EUR 6 to 7 million. These were not greenfield plants but renovations and replacements of whole processing departments. As interest rates continue to rise and raw materials and energy prices experience significant inflation, the poultry industry has been trending toward adapting to these new market conditions.

In 2022, we had noteworthy success in the Middle East, but the consolidation process is well underway there too. Processors in South America are now beginning to take advantage of the export opportunities created by Russia’s absence due to sanctions.

The poultry industry is also susceptible to fluctuations in the geopolitical climate. After the initial impact of the pandemic subsided, there was a brief period of optimism. However, the war in Ukraine has resulted in a slowdown of business activity, particularly in the European market. While the market in North America continued more or less as normal in 2022, China had lockdowns throughout most of the year. Even with a reopening economy, the Chinese poultry market will not return to the pre-COVID level in 2023.

There is an ongoing worldwide trend toward investment in automation and labor-saving processes. This includes Europe, although in this region the consolidation process seems to be completed. Europe, however, remains a hugely important market with a lot of potential for Marel Poultry.

Given stability elsewhere, our main growth in 2023 should come from North America, South America, Australia and Southeast Asia. Indonesia, for instance, is quickly becoming a very important market.

Growth drivers

Geopolitics, inflation, market dynamics and labor shortages will make 2023 a challenging year for the poultry industry. In light of rising interest rates, we expect customer investments to continue to shift away from large projects to focus on durable, labor-saving solutions and less capital-intensive ventures. We anticipate that growth will come largely from aftermarket activities, which keep increasing, while equipment sales will continue on their steady path.

In line with worldwide developments in environmental, social and governance (ESG) trends, we expect consumers to move quite rapidly toward more affordable protein sources with a smaller environmental impact, such as chicken and eggs.

Whatever the trend, the market for chicken products continues to present a growing opportunity, with fluctuations in growth rate from year to year. Marel’s challenge will be to take as big a share of this growth as possible. It is crucial that we remain dedicated to developing and delivering innovative products that align with the evolving poultry industry. Through perseverance, we will drive sustainable growth.

Global production and trade trends

As forecasted, production and trade of chicken meat grew in 2022. Production is estimated to have grown by 0.6% and reached 101.1 million tons. At the same time, trade is estimated to have grown by 2.0% and to have reached 13.5 million tons. In 2023, production is forecasted to rise further by 1.8% while trade is expected to grow by 3.3%.

The US continues to lead the market for chicken with roughly a fifth of the global output, while the most recent update indicates that China managed to edge out Brazil and take second place. Next year’s forecast however favors Brazil, and China is expected to take third place.

Brazil continues to dominate the exports and is forecasted to reach a third of the global trade in 2023, while Japan continues to be the largest importer and the US the largest consumer.

Global chicken production and trade

CAGR 2019-2023f: 3.1% for production and 0.9% for trade

Source: USDA Foreign Agricultural Service (2023, January update). Note: Figures for 2022 are estimated (e) while figures for 2023 are forecast (f).

Largest chicken producers

2023 forecast (outer) compared to five years ago (inner)

Source: USDA Foreign Agricultural Service (2023, January update).