December 15, 2006


Brazil's chicken producers adjust production downward as demand falls



The rapid increase in Brazilian broiler exports has been halted as data released by the SECEX confirms a 7 percent decrease in exports in the first half of this year compared to the corresponding period in 2005.


The problem of declining international demand was worsened by a strong real, which has appreciated 15 percent against the US dollar and Euro this year.


The broiler Industry in Brazil has responded by reducing placements of chicks and rationalizing production capacity.


Most integrators have shelved plans for expansion and scaled back weekly production to 333 million broilers in April 2006, which is 90 percent of the output in April 2005.


With continuing international concerns over bird flu, cooked poultry meat has gained popularity and exports are up significantly. 


During the first five months of 2006, Brazil exported 47,000 tonnes of cooked products, a 62-percent increase over that in the corresponding period in 2005.

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