August 20, 2010

Brasil Foods sees rise in Russia's meat demand

Brasil Foods (BRF) has forecasted a rise in Russian imported meat demand as a result of the strong drought that has affected the country during the current season.

Therefore, animal feed is reduced. Given the rise in production costs, meat output may be hampered, fuelling import demand for proteins such as poultry, pork and beef.

The Brazilian major meat producer also forecasts that meat production costs for Brazilian competitors may rise faster because of the cost of wheat-a major component of feed ratios in northern hemisphere countries in contrast to Brazil (which utilises mostly corn as feed input).