Brazil

Broiler

Broiler production in Brazil in 2007 is projected at 10.1 million metric tons. That represents an 8% increase from the same period in 2006. The increase in production was mostly due to a rebound in the export of broiler meat to traditional and new markets. Poultry exports from Brazil increased by 21% in January through August of 2007 when compared to the same time period in 2006. Brazil also saw an increase in domestic demand due mostly to a higher employment rate resulting in more consumer purchasing power and a higher demand for animal protein.

Domestic broiler consumption in Brazil is expected to increase 4% in 2008. The increase is due to continuing increases in employment and consumer purchasing power. Broiler meat is also more affordable than other meats to lower income consumers than beef or pork. There is also expected to be an increase in demand from the food service industry for further processed poultry items. The middle to upper class demand for poultry has shifted from the traditional whole bird to a higher demand for broiler parts and more further processed and value added or branded products.

Broiler meat exports from Brazil are expected to increase by over 5% in 2008. The increase is due mostly to higher world demand for broilers. World demand has been pushed up by less global concern over avian influenza and an aggressive marketing campaign by Brazilian poultry exporters.

Turkey

During January through August of 2007 turkey exports increased by 12 percent when compared to the same time period in 2006. Turkey exports from Brazil are expected to increase by 11% in 2008. The expected increase is due mostly to increased demand in the European Union.

Turkey production is expected to increase by 10% in 2008. The expected increase will be primarily due to strong domestic and export demand.

The same factors that pushed up the expected consumption of broiler meat in Brazil are expected to do the same for turkey consumption. Those factors were increased employment and higher disposable income. Traditionally turkey consumption in Brazil has been highly seasonal occurring mostly during the Christmas holiday season. Consumer trends are beginning to show more interest in consuming turkey products, mostly further processed and frozen entrees, throughout the entire year.

Poultry Production Costs

During the fist six months of 2007, the estimated average cost to product broilers increased 18.3% over the same period in 2006. The largest cost increase came from feed costs. The feed costs are expected to stay high despite an estimated record corn and soybean crops in Brazil this year. The federal government will likely maintain subsidized funds to cover corn producer’s cost of production but there is much concern in the country about the impact of ethanol on world commodity prices.

Source: USDA/FAS

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