August 2, 2012

Brazil's chicken production affected by rising corn and soy prices

Representatives of Brazil's poultry industry report that the recent rise of corn and soy prices are affecting chicken production during a meeting at the Brazilian Poultry Union (UBABEF).

The entity estimates for the second semester, a scenario depicting further reduction of production with unemployment, rising prices of chicken meat and reduced exports.

"The increase in overall costs of these inputs is causing a devastating effect on the industry. The industries need assurances in grain stocks, such as soy meal, until the end of the year. For this it is necessary to prompt government action through auctions and Flow Production Programs (PEPs) for the most affected poultry. The poultry industry also needs greater access to credit. It is unfair that the banks will not release more resources for an industry so important to the national economy," said the CEO of UBABEF, Francisco Turra.

"The increases in grain costs have already reached 70% this year. Poultry producers are unable to afford these increases. Likewise, they cannot keep stocks, given the lack of credit. Inevitably, the cost increases will be passed on to consumers, both in Brazil and abroad," Mr Turra said.