April 18, 2012

Brazilian poultry exports rose by 4.42% through the first three months of 2012, compared to last year, due to a record volume of shipments in March and double-digit growth to key markets in Africa and Asia.

Poultry exports totalled 363,600 metric tonnes in March, a record volume for the month and 6.6% higher than March 2011. Export revenue for the month rose 3.25%, totalling US$712.5 million, according to figures released Wednesday by Brazil's poultry processors and exporters association, Ubabef. Exports for the 2012 first quarter totalled 974,100 metric tonnes, up 4.42% from Q1 2011, with revenue up 1.1%, to US$1.89 billion.

The sales growth is significant considering Brazil's exchange rate with the dollar is still too high for the liking of exporters, said Francisco Turra, Ubabef president. With that being said, Brazil's poultry sector won't have a strong year if growth is limited to this pace in the coming months, he added.

Among products sold abroad, poultry cuts have grown the most by volume so far this year, up 12.8% through Q1 at 542,600 metric tonnes. Salted meats registered 6% growth (41,500 tonnes), and industrialized cuts rose 2% (46,000 tonnes). Whole chickens were the lone segment with a quarterly sales drop, down 6.5%.

"The growth in exports of products with some form of processing show that Brazil's poultry sector is increasingly moving toward business with higher added value," Turra said, via press release. "It's exactly why more governmental attention is crucial to agricultural industries, including pro-competitive measures like exemptions for INSS (payroll tax)."

The Middle East, Brazilian poultry's largest export market, imported 315,900 metric tonnes in Q1, down 12.7% from the same period a year ago. Asia, the number two market, bought 294,100 tonnes, up 16.8% from last year.

Exports to Africa, Brazilian poultry's third biggest market, rose 40.8% in the first quarter, importing 158,700 metric tonnes. Shipments to the EU totalled 112,500 tonnes, down 2.2% from Q1 2011. The Americas market imported 63,300 metric tonnes, up 2.6% from the year prior.