June 10, 2008

 

Brazil chicken industry pushes for corn imports

 

Brazil's Chicken Exporters Association (ABEF) is keen on importing corn to offset high local prices and high corn exports, the group said Friday (June 6, 2008).

 

At the moment, Brazil's chicken market is currently paying more for corn than the export markets.

 

The local market pays around BRL21 (US$12.88) per 60-kilogramme bag, while exporters were willing to pay BRL23 (US$14.14) per bag, excluding the discount for freight costs in south Brazil.

 

Steve Cachia, senior commodities analyst at Cerealpar said that the chicken exporter industry in southern Brazil has no advantages in importing GM corn because they want to assure Europe that they are using conventional feed.

 

However, the northern producers could import GM corn for animal feed for local chicken consumption, Cachia pointed out.

 

Cachia added that with the local market willing to pay more than export customers, Brazil will unlikely meet Conab's 11.5-million-tonne export estimate this season.

 

ABEF president Francisco Turra said that the group does not oppose Brazil's corn shipments but wanted to import corn to increase supply for the local chicken industry.

 

Brazil is the world's largest chicken exporter and corn is the main feedstock for poultry companies like Sadia and Perdigao.

 

Despite a 14-percent increase in output to 58.4 million tonnes this season for the 2007-08 corn crop, exports are expected to reach around 11.5 million tonnes, the National Commodities Supply Corp. (Conab) reported.

 

Brazil exported 2.5 million tonnes of corn from January to May 2008. Corn export business already closed is expected to be around 4 million tonnes, grain brokerage Cerealpar, said.

 

Last year, Brazil exported 11 million tonnes, mainly due to Europe's corn shortage.