December 22, 2023

Brazil boosts chicken production despite bird flu threat

Brazil has increased chicken production despite the emergence of the highly contagious bird flu virus, which made its first appearance in the country in May this year, Reuters reported.

Projections unveiled by the Brazilian pork and poultry lobby ABPA on Tuesday indicate that Brazil is poised to produce up to 14.9 million tonnes of chicken meat by the end of this year, with a further increase to 15.35 million tonnes projected for 2024. These figures translate to an annual output surge of up to 2.6% for 2023 and up to 3.7% for 2024, reinforcing Brazil's position as the world's leading chicken supplier.

With this year's production boost and sustained demand from global importers, Brazil is anticipated to secure an impressive nearly 38% market share of the global chicken trade, up from approximately 36% in 2022, according to ABPA.

ABPA president Ricardo Santin commended Brazil's successful efforts in safeguarding its commercial poultry farms. He said that despite the bird flu's impact on wild birds and other animals, it has not infiltrated commercial operations. But he cautioned that the industry must adapt to coexist with the persistent threat of the virus, asserting that the virus will be around all the time.

Notably, ABPA, representing major companies such as BRF SA and JBS SA, highlighted a consistent uptrend in pork production by local firms. Pork output in Brazil, the world's fourth-largest pork exporter, is anticipated to reach up to 5.1 million tons in 2023 and up to 5.15 million tons in 2024.

In terms of chicken exports, ABPA forecasts a record-breaking year in 2023, with shipments reaching up to 5.15 million tonnes, valued between US$9.5 billion and US$10 billion. Looking ahead to 2024, Brazilian chicken exports are expected to further increase to up to 5.3 million tonnes, aligning with sustained global demand for Brazilian poultry products.

Positive prospects extend to Brazilian pork exports as well, projected to reach up to 1.22 million tonnes in 2023 and up to 1.3 million tonnes in 2024. The estimated value of pork exports is anticipated to hover around US$2.8 billion in 2023.

ABPA suggests that Brazil might surpass Canada to become the world's third-largest pork exporter, as Canadian sales decline. Brazilian companies are actively exploring new markets for pork exports, with a focus on countries like the United Kingdom and Malaysia, among others.

-      Reuters