January 13, 2011

Brazil's 2011 broiler output seen to grow 3%

Broiler production in Brazil for 2011 is forecasted to increase 3% as compared with 2010.

Domestic consumption is expected to remain strong due to Brazil's economic growth; trade sources expect broiler exports to grow by 3% due to higher exports to new markets.

Broiler production in Brazil in 2011 is reviewed in this week's report by USDA's Agricultural Marketing Service (AMS), which looks at international developments concerning the poultry industry.

Brazil's broiler production is forecast to reach 11.8 million tonnes in 2011, up 3% from the previous year. Producers and analysts expect the Brazilian economy to remain firm in 2011. GDP is projected to grow 7.3% in 2010 and 4.5% in 2011, according to Brazil's Central Bank December 2010 Inflation Report. Lower rates of unemployment – 5.7% in November 2010 – and inflation (5.9% in 2010), combined with improved consumer purchasing power, will likely help maintain the current strong domestic demand for animal protein, of which broiler meat in the most competitive.

Feed prices are projected to remain stable during the 2010-11 crop year with estimated record soy and corn crops. The new crop plan announced by the federal government makes available US$64 billion in subsidised funds to boost production of grains and oilseeds during the coming crop year (October 1 to September 30). Brazil will be producing a large amount of biotech corn and trade sources estimated that up to 55% of the crop is likely to be biotech which is expected to increase yields.