October 4, 2007

USDA: Brazil broiler production set to increase in 2008

Post projects Brazil's broiler and turkey meat production to increase in 2008 by 4 percent and 10 percent, respectively, in response to strong domestic demand and continued expansion in exports, according to a US Department of Agriculture attache report posted Wednesday (October 3) on the Foreign Agricultural Services Web site.

The increase in production reflects strong domestic and export demand for both types of meat. Poultry packers, however, remain concerned about the impact of ethanol production on world commodity prices and higher feed costs, despite record Brazilian corn and soybean crops.

The improved outlook for the Brazilian economy supports higher domestic demand for animal protein in 2008, as consumers' real income increased by over five percent in the past 12 months, and most analysts' project stronger economic growth in 2008.

Broiler consumption should benefit from higher disposable income since chicken meat is highly competitive in the retail market, compared to beef and pork. Broiler and turkey exports remain firm in the world market, and the Brazilian product is benefiting from disease free areas and competitive prices in most traditional poultry markets. Continued market promotion also helps to boost sales to emerging markets.