January 14, 2011

Brazil may up chicken production to meet demand

Brazil may increase its chicken production by 3% as strong domestic and overseas demand for chicken in Brazil is expected because of enhanced consumer purchasing power this year, according to the US government.

This is due to a decreased inflation and unemployment as well as a projected rise in GDP of 4.5% in 2011, it said in a report.

Brazilian broiler production is expected to amount to 11.8 million tonnes in 2011, up 3% from 2010. Broiler exports could also increase by 3% in 2011, because of the negative impact of the valuation of the Brazilian Real and to competition from other exporters in Asian markets. Exports to the EU may also continue its decline in 2011.

The US government also stated that Brazil has also expanded its broiler exports to China, Indonesia and South Africa because of the strong market promotion strategy in these new markets.