March 6, 2008

Brazil's 2008 poultry production forecast to increase by 5 percent

Brazil's broiler production could increase by 5 percent in 2008, reflecting strong domestic and export demand for broilers, according to a GAIN report released by USDA.

Broiler production is forecast to reach 10.8 million tonnes in 2008, compared to the 10.3 million tonnes in 2007.

Broiler exports are also estimated to increase by over 7 percent to 3.1 million tonnes, and top destinations would be the Middle East, Asia and Europe.

The favourable outlook supports a strong domestic demand for animal protein. Feed prices remain a concern among Brazilian poultry producers, who also expect stiff competition from the domestic beef market as a projected reduction in beef exports could lead to lower consumer price.

Poultry producers are also worried about the appreciating Brazilian currency, which has gone up by 17 percent in 2007. However, this factor is unlikely to affect exports.