Brazil Reports High Chicken Prices in H2 of 201201 August 2012
BRAZIL - At a meeting held on Monday, 30 July, at the headquarters of the Brazilian Poultry Union (UBABEF), representatives of the entire poultry industry reported that increases in prices of corn and soybeans in recent months are affecting chicken production.
The entity estimates for the second semester, a scenario depicting further reduction of production with unemployment, rising prices of chicken meat and reduced exports.
"The increase in overall costs of these inputs are causing a devastating effect on the industry. The industries need assurances in grain stocks, such as soybean meal, until the end of the year. For this it is necessary to prompt government action through auctions and Flow Production Programs (PEPs) for the most affected poultry. The poultry industry also needs greater access to credit. It is unfair that the banks will not release more resources for an industry so important to the national economy," said the CEO of UBABEF, Francisco Turra.
"The increases in grain costs have already reached 70 per cent this year. Poultry producers are unable to afford these increases. Likewise, they can not keep stocks, given the lack of credit. Inevitably, the cost increases will be passed on to consumers, both in Brazil and abroad," Mr Turra said.