August 21, 2012

Due to soaring feed prices and a shortage of credit for companies, the Brazilian poultry industry is currently experiencing one of the worst crises in history.

According to the USDA there has been a reduction of 98.8 million tonnes of corn in the last forecast for the season 2012-13.

As a result, corn prices have been soaring in international markets, causing huge problems to Brazil poultry producers. Similarly, soy is also suffering as a result of drought, which is also having a knock-on effect to poultry producers.

Internally, the past six months recorded increases of 80% in soy prices and 40% to the cost of corn. Together, the two inputs represent over 60% of total production cost. Producers have noted the effects of high feed costs, with some having to halt production.

The UBABEF has requested that the Federal Government takes action to free up credit for producers affected by soaring feed costs.