October 31, 2008

World poultry production is expected to increase 4 percent to 74 million tonnes, with China and Brazil projected to have faster growth while US production is expected to shrink on high feed and energy costs.

Production in China and Brazil are expected to increase 8 and 5 percent, respectively. China has increased its chicken production since 2006 mainly due to a sharp decline in pork supplies. Brazil, on the other hand, is expected to increase production as foreign demand surges.

The EU production is forecast to grow slightly despite falling output from the UK. Bird flu outbreaks in the UK have led to trade bans for its products, causing British producers to reduce production.

Brazilian and US poultry exports, which account for nearly 80 percent of the world total, are expected to follow opposite directions.

Brazil is expected to hit another record high as exports to Hong Kong, Japan, the UAE, the EU, Saudi Arabia, and Venezuela rise sharply.

On the other side, US poultry exports may take a drop as Russia cuts import quota. However, exports are expected to remain strong in other markets such as China, Mexico, Ukraine, Canada, and Cuba.