August 17, 2006

 

Brazil's July chicken exports down 29 percent on-year

 

 

Brazilian chicken exports in July continued to slump, dropping 29 percent to just over 185,710 tonnes from the same period in 2005, as principal buyers such as the Middle East and the European Union kept away again due to bird flu fears, said the country's Association of Chicken Producers and Exporters (ABEF) on Wednesday (Aug 16).

 

Exports also fell compared to June when 194,882 tonnes were shipped out.

 

Correspondingly, revenues in July also plunged to US$211.7 million, down 33.6 percent compared to July 2005.

 

For the first seven months of the year, the country's exports have now slipped 11.5 percent to just under 1.43 million tonnes, compared to the year-ago period.

 

Meanwhile, chicken export revenue have also dipped 9.25 percent to US$1.67 billion compared to the first seven months in 2005, as a surging Brazilian real against the dollar as well as lower chicken prices earlier this year cut into profit margins.

 

Exports to the Middle East--which accounts for roughly 30 percent of Brazil's overseas chicken market--have now fallen to roughly 340,592 tonnes in the first seven months of this year, down 29.3 percent compared to the year-ago period.

 

Meanwhile, exports to the EU--which represents nearly 15 percent of Brazil's market--fell by 20.3 percent in the first seven months of 2006 to 296,394 tonnes.

 

Shipments to Africa, however, have risen 30.1 percent on the year to 142,888 tonnes, while South American countries also bought more Brazilian chicken, with exports vaulting 73.6 percent from the year-ago period to nearly 96,740 tonnes.

 

Whole bird exports dropped 21.5 percent in the first seven months of this year to 471,377 tonnes, as the European Union reduced purchases by 36 percent and the Middle East diminished purchases by 33.5 percent.

 

Shipments of chicken cuts, meanwhile, edged down 8 percent to 891,931 tonnes from January to July this year, compared to the year-ago period.

 

Exports of cooked chicken meat, however, have leapt to nearly 63,404 tonnes, up 50 percent from the first seven months in 2005, driven by sales to the European Union, which jumped by 70 percent from the same period a year ago.

 

Brazil is the world's leading chicken exporter.