August 24, 2010

Global poultry output to grow by 3% in 2010-11

According to the USDA, global production of chicken is expected to grow 3% in 2010, with major contributions from the US, Brazil and China.

Poultry sales should be the most stable of the new season in the meat segment.

The forecasted 2.3% expansion in the US supply, main producer of chicken in the world, should bring no harm to Brazilian competitors. The further heated domestic demand in the US market should consume this surplus, keeping exports and imports virtually stable.

The increases in Chinese and Brazilian chicken production will be stimulated by their domestic demands, especially considering the expansion of the Chinese economy. In Brazil, incentives to exports are rising and, thus, we forecast growth of 2.8% in production this year over 2009, up further 2.9% in 2011.