June 10, 2011


Brazil to become world's leading chicken exporter in 2011

The US's 30-year agricultural export supremacy is being challenged by Brazil in the areas of soy, beef, corn, and even rice, with significant advances in global trade shares, according to an FAO report.
However, the report also cautions that Brazil urgently needs an overall infrastructure boost to continue expanding its export capacity. Another issue which will have to be addressed is the sustained domestic costs.
In meats Brazil is already the world's second producer and has more than compensated the persistent stagnation of Argentina, and regarding meat exports is ranked first with 1.5 million tonnes annually.
The FAO report anticipates that an only negative factor for beef export expansion is Russia, as has happened, which has suddenly and drastically cut Brazilian imports, nevertheless exports are estimated to grow in 2011 following three years in which the domestic market was also flat.
For 2011 FAO forecasts a drop in US chicken exports which will help Brazil become the leading exporter of the world with over four million tonnes equivalent to a third of the global market.
Regarding soy, the Brazilian crop is estimated to reach 76.9 million tonnes this year compared to 61 million tonnes only a couple of years ago. The US crop is 100 million tonnes but the gap with Brazil is closing. FAO estimates this year's world harvest of soy to reach a record 464 million tonnes.
The corn crop in 2011 will reach a record 60 million tonnes including 12 million tonnes exported.

But Brazil also has problems with storage capacity that do not correspond to a world top league farm exports country. Sugar, for example; in 2011 the harvest is 39 million tonnes, up 4.6% over 2010, but exports are expected to fall 1.5% because of storage problems.

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