June 6, 2006

Brazil's poultry industry seen to remain strong in long term

Brazil's poultry industry, the largest consumer of domestic feed at 49 percent, is forecast to remain strong over the long term, according to a Rabobank publication on the Brazilian feed industry released to the media Monday (Jun 5).

"Given the industry's existing capacity and good coordination, the fundamentals are favourable for the long term, provided there are no (bird flu) outbreaks in Brazil, or other major sanitary outbreak," said Rabobank.

However, bird flu outbreaks in Asia and Europe are expected to slow Brazilian poultry exports in the near term, the report said.

From 2000 to 2005, Brazilian poultry output grew 24 percent annually, according to Rabobank.

Brazil's feed sector is third largest in the world, due to ample availability of inputs such as corn and soymeal as well as large consumption demand from both the poultry and pork industries.

Brazil is the world's largest poultry exporter.