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USDA International Egg and Poultry


09 May 2012

International Egg and Poultry Review: BrazilInternational Egg and Poultry Review: Brazil

Brazil’s broiler meat production is estimated to reach 13.3 million metric tons (MMT) in 2012, driven mostly by domestic demand and a small recovery in exports.
USDA International Egg and Poultry

Broiler meat production is influenced by the world economic uncertainties impacting some major Brazilian export markets, as well as issues with some trade partners. Other important factors include an overvalued Brazilian currency, a slowdown in the growth rate of domestic consumption, and higher costs of production due to higher corn prices. Corn comprises about 66-70% of poultry feed rations; wholesale corn prices have risen from US$12.14/60/kg in 2010 to US$18.84/60/kg for Jan-Jun 2011. Corn feed use for poultry in 2011/2012 is estimated at 25 MMT.

Domestic consumption of broiler meat is projected to increase at a slower rate in 2012, up 3% to 9.9 million metric tons due to increases in disposable incomes of Brazilian consumers and broiler meat’s competitive price compared to other meats. Broiler meat consumption grew 14% in 2010 and 6% in 2011.

Broiler meat exports are expected to grow 3% in 2012, to 3.3 MMT. The growth in exports is likely to be driven by higher sales of whole broilers in general, and chicken parts, in particular, to China and Hong Kong. Trade sources also expect higher exports to Egypt and Iraq in 2012.

The total volume of broiler meat exports in 2011, including chicken feet and paws, reached 3.7 million metric tons, an increase of 3.3% from 2010. (Note: The Supply & Demand table excludes chicken feet and paws exports to China and Hong Kong, as per USDA export methodology.) The value of exports increased 22% to US$7.6 billion due to the increase in the average price of broiler meat in the world market.

Broiler export markets with major increases in 2011 were China (up 61%), followed by Angola (up 38%) and Iraq (up 28%), while markets with major declines were the Russian Federation (down 58%) and Egypt (down 42%). The decline in exports to the Russian Federation was a result of significant number of Brazilian poultry plants delisted by Russian officials, while the decline in Egypt was due to logistical problems associated with the political instability in the country last year. South Africa applied antidumping tariffs on Brazilian broilers of 62.92 percent on whole broilers and 46.59 percent on chicken parts. South Africa was the 7th largest market for Brazilian broiler exports in 2011 with shipments of 195,416 metric tons (PWE).

Source: USDA/FAS GAIN Report BR 0801; BR 0714; BR 0803

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