February 24, 2009

Broiler production in Brazil this year is likely to increase by only 3 percent in 2009 as compared to a projection of seven percent growth last year due to current oversupply of poultry meat and reduced international demand for Brazilian broilers, reports the US Department of Agriculture.

Although industry leaders forecast a five percent increase in broiler exports in 2009, the USDA revised exports to increase by only 2 percent in 2009, significantly below 2008's double-digit increase. The foreseen sluggish growth of poultry is also due to a mixed view on Brazilian economy this year with most market analysts seeing an economic growth of 1 to 2 percent as against the government's 4 percent. Local demand for animal protein is expected to increase but at a slower pace than in previous years, as the unemployment rate is expected to increase.

For more of the USDA report, please click here.