December 9, 2008
Brazil's poultry and pork meat prices seen to fall
Prices of poultry and pork meat in Brazil will likely fall in the coming months but higher local sales and exports could offset this drop, Brazil's largest meat processor, Sadia, said on Monday (Dec 8, 2008).
The company, which reported a third-quarter net loss of BRL$777 million (US$310 million) mainly from foreign exchange derivative losses, plans temporary shutdowns at some of its plants in the first quarter of 2009 to reduce production costs.
The chairman of Sadia, Luiz Fernando Furlan said commodity prices are adjusting in general, which tends to reduce production costs especially when Brazil's main grain crop gets to the market.
Furlan said this will lead to a fall in consumer prices and 2009 will be a year of rise in volume of sales.
International grain prices have fallen sharply during recent weeks on prospects of weakening demand worldwide.
He said Sadia's net short position last week was cut by US$300 million, totalling its currency derivatives to US$660 million.