Broiler Production Expected to Increase in Brazil

BRAZIL - Brazil's broiler production could increase by 5 per cent in 2016, according to the latest predictions from the US Department of Agriculture's Foreign Agricultural Service.
calendar icon 21 August 2015
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The organisation's report expects production to reach nearly 13.5 million metric tons as a result of stable feed costs and higher exports due to the 30 per cent depreciation of the Brazilian currency and new market opportunities.

Feed costs are expected to remain stable due to the record soybean and corn (maize) crops expected this year. Demand for Brazilian chicken could also increase as a result of the avian influenza affecting other countries, including the US.

The Brazilian government has recently opened new markets for Brazilian broilers, such as Pakistan, Malaysia, Myanmar, and Mexico (re-authorisation for exports until 2016). Brazil is now able to exports broilers to 158 countries, but 70 per cent of all poultry exports are concentrated in 10 countries. Brazil will also be increasing its exports to China in the coming year.

Items pressuring production costs in 2015 are electricity, labour and transportation, while costs of nutrition and day-old-chicks are declining. Overall though, the average cost of broiler production is expected to decrease by three to four per cent in Parana state, Brazil's largest broiler producing region.

The slow growth path in domestic demand is due to the current economic recession in the country and reduced purchasing power of consumer due to the high level of indebtedness of Brazilians and rising higher inflation rates. There is also high unemployment in the country.

However, due to high beef prices in the domestic market, broilers remain the affordable animal protein in Brazil. The domestic consumption of broiler meat is expected to increase by 2 per cent in 2016.

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