February 27, 2007

 

Brazil's broiler exports in 2007 expected to be up 10 percent

 

 

Brazil's broiler exports in 2007 are expected to reach 3 million tonnes, up 10 percent from the volume exported in 2006 as bird flu fears recede and greater demand is coming from Europe, Russia, Malaysia and African countries, according to a USDA FAS report released 15 February. 

 

The country's broiler production for 2007 would most likely be five percent higher than that for 2006 and hit 9.8 million tonnes the report said. This increase reflects the projected recovery in the exports of broilers, principally cuts and processed broiler meat.

 

A stronger economy would also support a boost for animal protein, the report added.

 

Strong market promotion efforts jointly conducted and financed by the Brazilian government agency for market promotion are also expected to yield higher export demand.

 

However, the report noted that limiting factors such as the strong Real, increase in feed costs and bird flu would continue to plague the industry.

 

Brazilian broiler export volumes and prices in 2006 had both fallen five percent.

 

Whole broiler exports for last year was down nine percent from 2005 while exports of broiler parts fell nearly 5 percent both in prices and volume from 2005.

 

However, on the up side, the report noted that processed broiler exports increased significantly in 2006 by 52 percent and reached 127,000 tonnes.

 

Broiler exports to Asia, Brazil's largest broiler export market, fell two percent in 2006. Japan is Brazil's largest customer in the region, the report noted.

 

The Middle East region is the second largest market for Brazil's broiler exports, mostly whole broilers. However, exports fell eleven percent in 2006 due to a drop in exports to Saudi Arabia. Still, the kingdom remained Brazil's single largest market for chicken meat.

 

Exports to the EU, the third largest market for Brazilian broiler exports, also fell 9 percent in volume in 2006, partially attributable to the imposition of quotas, the report said.

Brazil's broiler export rose 50 percent to South Africa but declined 28 percent to Russia.

 

(For more of the USDA report, please click here