February 15, 2006

Brazilian broiler production and export to expand in 2006

Brazilian broiler production and trade is expected to expand in 2006 but at a lower rate than last year, according to USDA's latest report on Brazilian poultry and products released Jan 31. Higher domestic demand and increased exports will likely drive broiler production to increase by 4 percent.

However, in the report, it was pointed out that some factors could affect production and trade of Brazilian poultry in 2006. The Brazilian currency could appreciate against the US dollar. Due to concerns of the bird flu, poultry consumption in some markets may drop.

USDA predicted broiler production in 2006 to rise 7 percent to 10 million tonnes, from the record level of nearly 9.4 million tonnes last year. The increase can be attributed to firm domestic demand and expanded exports because of bird flu problems faced by other exporting countries.

Similarly, broiler exports in 2006 are expected to increase 5 percent to reach 3 million tonnes.

Export data for 2005 showed that Brazilian broiler exports in 2005 increased by 15 percent in volume and 35 percent in value. The year also saw Japan become the largest market for Brazilian broiler exports, with the EU as the second largest market.      

For the full USDA report, click here.