February 23, 2010

 

Brazil poultry exports plummet by 15%

 

 

Brazil exported 15% less poultry in January 2010 compared to January 2009.

 

According to the Brazilian Chicken Producers and Exporters Association (ABEF), this January's poultry export volume of 233,000 tonnes reflected a drop of 15% from last January.

 

This reduction could have been caused by decreased poultry sales to Venezuela, as reported in The Progressive Farmer, arising from a fall in demand leading to 77% less poultry sold to Venezuela due to surplus stocks accumulated between January and June last year.

 

The shrinkage in Brazil's poultry exports followed a revenue decline of 16% in 2009, which ABEF ascribed to the ongoing global financial crisis that started in 2007, falling prices and strengthening of the local currency, which adversely affected Brazil's international market competitiveness.

 

Local corn and soy markets may suffer financial losses from diminished poultry production and declining poultry exports volume, especially since Brazil produced a bumper corn harvest last winter and possibly this coming winter too. Specifically, a slowdown in local demand and over-stocking may force prices to fall below production costs.