April 16, 2013
Brazil's poultry industry may receive US$1.5 billion in credit lines
As part of an annual Agricultural and Livestock Plan, the government of Brazil is expected to extend at least BRL3 billion (US$1.52 billion) in credit lines to its poultry industry for modernisation investments this year.
This is according to the president of Brazil's poultry processors and exporters association (UBABEF) on Friday (Apr 12).
The public financing option will likely be focused on modernisation of aviaries and equipment for poultry producers and processors. Producers in particular were not able to invest much in the last year after facing a rapid rise in grain prices, said Francisco Turra, president of UBABEF, during a news conference Friday.
Brazil's annual Agricultural and Livestock Plan, which should be announced in May, will cover the 2013-14 harvest cycle and provide credit lines and financial aid to most of Brazilian agribusiness this year. Improving productivity and sanitation for poultry producers will help Brazil better its chances for export authorisation from new markets, Turra said.
Turra met Friday morning with executives from major poultry processors and the president of Brazil's National Development Bank (BNDES), Luciano Coutinho. Industry leaders asked for Coutinho's support as they petition the government to release years of accumulated credits that companies have built up from their state and federal taxes. UBABEF estimates these credits total BRL3 billion (US$1.52 billion) amongst its member-companies in the poultry sector.
The industry wants at least 50% of this total returned to companies, suggesting a deal that would ensure it is invested in business development, research and new technologies, Turra said. The industry would generate around 50,000 new jobs with that kind of investment, he added.
BNDES may also study providing loan access to small and mid-sized companies in the poultry industry with interest rates and terms that could be flexible, based on seasonal demands on the industry.
