May 11, 2012


Brazil's chicken production expected to rise



Brazil's chicken production is expected to reach 13.3 million metric tonnes this year, due to domestic demand and a small recovery in exports.


According to the USDA's International Egg and Poultry Review, Brazil's broiler meat production is influenced by the world economic uncertainties impacting some major export markets, as well as issues with some trade partners.


Other factors include an over-valued Brazilian currency, a slowdown in the growth rate of domestic consumption, and higher costs of production due to higher corn prices.


Domestic consumption of broiler meat is expected to rise at a slower rate in 2012, up 3% compared to 6% in 2011, due to increases in disposable incomes of Brazilian consumers and broiler meat's competitive price compared to other meats.


Broiler meat exports are projected to rise by 3%. The growth in exports is likely to be driven by higher sales of whole broilers in general, and chicken parts, in particular, to China and Hong Kong. Trade sources also expect higher exports to Egypt and Iraq in 2012.

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