Brazil

Brazil’s broiler production and exports were inhibited in 2006 due to the impact of avian influenza on world broiler consumption and a stronger Brazilian currency. Production in 2007 is projected to increase due to strong domestic demand and a rebound in broiler exports.

Broiler meat production is forecast to reach 9,795,000 metric tons in 2007, up about 5% from 2006, after a minimal increase in 2006 compared to 2005. Broiler exports fell around 1% in 2006 but are expected to increase nearly 9% in 2007. World poultry consumption is expected to recover from 2006, although production in countries which were heavily affected by avian influenza will take a while to recover.

Brazil’s exports to Europe and other markets, such as Russia, Malaysia, and African countries are expected to increase after a recent outbreak of high path avian influenza in the United Kingdom. UK poultry meat exports totaled 230,720 tons, which consisted of fresh and frozen whole birds and cuts, throughout 2006. However, not that the UK only exported from January throught November of 2006 with no exports of poultry meat in December of 2006. The UK’s top markets outside of the EU-25 were Russia, China, South Africa, Benin, and the Ukraine.

The Asia market remains as Brazil’s largest market for broiler exports, although exports to the region dropped by two percent in 2006. Japan is the largest importer in the region of Brazilian chicken meat, mostly parts.

The Middle East region is the second largest market for Brazil’s broiler exports, mostly whole broilers, but exports dropped by 11 percent in 2006, due to a drop in exports to Saudi Arabia of 10 percent. However, Saudi Arabia remains as Brazil’s single largest market for chicken meat.

The European Union was the third largest market for Brazilian broiler exports, mostly broiler parts, but overall exports in 2006 dropped by nine percent in volume. The decline in broiler exports to the European Union reflects the imposition of EU quotas.

The major surprise in 2006 was Brazil’s significant increase of nearly 50 percent of broilers (both whole and cuts) to Africa, mostly to South Africa. Shipments to Russia declined by a significant 28 percent in 2006.

Brazil’s domestic consumption rose slightly in 2006 and is forecast to increase 3% in 2007. Increased economic growth, lower inflation rates, stable unemployment levels, and inproved consumer purchasing power are credited with creating a strong domestic demand for animal protein. Demand is also expected to increase from the food service industry for products such as frozen chicken meals, pre-cooked meals, and chicken burgers.

Source: USDA/FAS GAIN Report; DEFRA; United Nations Statistics Division; news wires

Source: Department of Commerce, Foreign Trade Statistics

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