Brazil to rescue chicken sector with US$1.38 billion

Brazil's government is looking to extend a line of credit up to BRL3 billion (US$1.38 billion) to help the country's troubled chicken industry, according to Trade and Industry Minister Miguel Jorge on Wednesday (Apr 29).

Jorge said they need to create a bridge loan to help finance working capital of slaughterhouses and producers.

The global recession had eroded demand and hurt as many as 100,000 producers in the southern state of Santa Catarina, Jorge said.

The government this month had extended a line of credit of BRL10 billion (US$4.59 billion) to beef producers.

Several slaughterhouses had recently shut down and the meat industry is suffering a lot, Jorge said.