August 18, 2023

 

Brazilian chicken production set to sustain accelerated pace amid global glut

 

 


Amid the ongoing challenge of a global chicken oversupply, Brazilian chicken production is poised to maintain its accelerated trajectory until at least the conclusion of 2024, said the Brazilian Association of Animal Protein (ABPA), a prominent lobby group representing chicken and pork processors, Yahoo! Finance reported.

 

The saturation of the chicken market has had a notable impact on the earnings of Brazilian meatpackers in recent quarters. It has prompted actions such as capacity closures by major firms like Tyson Foods in the US.

 

ABPA, which represents industry giants including JBS SA and BRF SA, unveiled its forecast indicating that the country's chicken output for the year 2023 could potentially witness a growth of up to 3%, reaching a substantial 14.95 million tonnes by year-end.

 

Looking forward, the following year may witness an even higher expansion, with chicken production anticipated to escalate by as much as 4.5%, resulting in a total of 15.5 million tonnes.

 

Brazil, recognised as one of the world's major chicken producers, alongside China, the US, and the European Union, had previously been expected to generate 15 million tonnes of chicken in the current year, according to Ricardo Santin, the President of ABPA.

 

Santin elaborated that the newly unveiled projections already account for a gradual reduction in Brazil's output, thereby contributing to an enhanced equilibrium between supply and demand in the latter half of the year compared to the initial months.

 

Due to the substantial scale of Brazil's production and exports, Santin underscored the nation's influential role as a driver of both prices and volumes in global markets.

 

Brazilian chicken exports, which constitute 35.6% of the world's chicken supplies, are also poised to witness an upward trajectory. ABPA's estimations place Brazilian chicken exports between 5.1 million and 5.2 million tonnes by the conclusion of 2023, potentially reflecting an increase of up to 8% from the preceding year.

 

Looking ahead to 2024, the export figures might escalate by as much as 5%, reaching 5.35 million tonnes, as outlined by ABPA.

 

China, one of the prime destinations for Brazil's chicken exports, notably elevated its import of Brazilian chicken by 33% within a specific timeframe. ABPA anticipates China to continue procuring substantial volumes from Brazilian suppliers, given expectations of a reduction in China's domestic chicken output.

 

Notable importers of Brazilian chicken during the initial seven months of 2023 included China, Japan, the United Arab Emirates, South Africa, and Saudi Arabia.

 

-      Yahoo! Finance

Video >

Follow Us

FacebookTwitterLinkedIn