December 20, 2007

Brazil '07 chicken exports seen up 50 percent

Brazilian chicken exports are seen to reach a record of US$ 4.8 billion this year, fifty percent more than last year with exports to new market Middle East forecast to exceed US$1 billion.

According to figures supplied by the Brazilian Poultry Exporters Association (Abef), shipments may end the year at 3.2 million tonnes, an increase of 18.5 percent in comparison with 2006.

Abef president Christian Lohbauer said the main markets boosting Brazilian sector exports were the European Union and the Middle East, which posted growth of 73 percent and 65 percent respectively from January to November.

Chicken exports to the Middle East during the eleven months of the year totalled 894,000 tonnes, up 34 percent over the same period last year with revenues totalling US$1.1 billion. Shipments to the European Union totalled 510,000 tonnes, growth of 32.5 percent on-year worth US$ 1.1 billion.

Asia was the third biggest buyer, with purchases of 736,000 tonnes from January to November, an increase of 8 percent over the same period last year. Revenues totalled US$ 1 billion, up 33 percent. Exports to Africa totalled 234,000 tonnes for US$ 207 million, Russia, 177,000 tonnes and revenues of US$ 269 million, South America, 158,000 tonnes and US$ 196 million.

For 2008, Lohbauer estimates growth of 6 to 8 percent in total sales of chicken as exports will continue to rise and production up 5 percent in output. This year, a total of 10.2 million tonnes of chicken were produced and shipments were averaged to have 270,000 tonnes a month.

However, there are some concerns, among which are higher prices of soy and corn. Lohbauer said corn and soy prices rose as much as 42 percent and 72 percent respectively on the Chicago Futures and Commodity Market, reducing the competitiveness of Brazilian chicken on the foreign market. Another factor that also generates difficulties for the sector is the appreciation of the Brazilian real against the dollar, which has already reduced the profitability of Brazilian exports and the impact would still felt until next year.