July 30, 2008

Brazil food inflation seen hurting Perdigao sales

Food inflation could impact sales for Brazil's leading chicken company, Perdigao (PDA), in the second half of the year, the local Estado newswire reported.

Investor Relations director, Leopoldo Saboya, said the company is maintaining its projected sales volumes so far, but warned that it could be revised downward.

Agribusiness lender Rabobank told Estado Tuesday that food inflation could cut into consumption, ultimately lowering commodity prices as demand softens.