February 21, 2005



Brazil chicken exports set to grow, new interest from South Korea


Brazilian chicken exports increased in both volume and revenues in January, compared with January 2004, according to a report released by the Brazilian Association of Chicken Producers and Exporters (Abef).


According to the Abef, export earnings in January amounted to US$199 million, against US$164 million in January 2004. This marked an increase of 20.53 percent and in terms of volume, an increase of 16.6 percent, rising from 161 thousand tons to 187 thousand.


Japan and Saudi Arabia continue to be the biggest buyers with imports of US$39 million and US$33 million respectively in January.


Abef also revealed earnings growing faster than the volume from better market prices. The opening of China's market will lead to a further surge in prices and sales volume.


Other than China and Japan, the other East Asian heavyweight buyer is South Korea. In January, a group of South Korean lawmakers informed the Brazilian Minister of Agriculture, Livestock, and Supply, Roberto Rodrigues of interest in importing chicken from Brazil.


South Korea has the potential to import, annually, 60-80 thousand tons of chicken from Brazil, and the expectation is for the first shipments of the product to be embarked before the end of this semester. This interest has come in the wake of


South Korea's interest in importing Brazilian poultry grew after the outbreak of cases of "bird flu" in the countries that are its traditional suppliers.


The country has begun negotiations for poultry imports with Brazil's Ministry of Agriculture. Another Korean mission visited Brazil last year and licensed four slaughterhouses for export.


Brazil also intends to export beef to Korea and awaits a definition by the Koreans on opening its market to this product. Kim Jin Pyo, president of the Korean delegation, revealed that South Korea is analyzing Brazil's sanitary conditions, particularly with regards to foot and mouth disease in the country.

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