August 26, 2005

USDA: Brazil annual poultry report 2005

Broiler production is expected to increase by 5 percent in 2006, following a record production of 9.1 million metric tons estimated for this year. The increase in broiler production in Brazil continues to be driven by record exports as Brazil makes major in-roads in different markets due to the animal health problems faced by some competitors.

In addition, firm domestic consumption contributes to the expansion in production.

Lower production costs in 2005 and higher exports prices have contributed to higher profit margins of most poultry packers and benefited integrated broiler producers

Despite the complaints of Brazilian poultry packers against the appreciation of the Brazilian currency (nearly 15 percent in 2005) and higher domestic interest rates, exports of broilers are booming and profit margins have increased due to lower production costs and an increase in the average export price of broilers in 2005.

For the full USDA report, click here.