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Brazil - Poultry and Products Semi Annual Report 2010

by 5m Editor
16 April 2010, at 12:00am

The USDA Foreign Agricultural Service projects broiler and turkey production and trade to rebound in 2010 in response to projected higher world and domestic demand for both meats. The latest GAIN report from USDA FAS also revised downward production and exports of broiler and turkey to reflect the impact of the financial world crisis on poultry trade in 2009.

Executive Summary

The outlook for 2010 remains unchanged with production at 11.4 million metric tons, up nearly four per cent from last year. Domestic consumption is estimated at nearly 8.1 million metric tons. FAS estimates reflect the concerns of broiler packers with the current over-supply of poultry meat and reduced international demand for Brazilian broilers. The outlook for 2010 calls for a recovery of the Brazilian economy with a projected five per cent growth in the gross domestic product (GDP), lower unemployment rates and increases in disposable income. Industry analysts expect demand for animal protein in 2010 to be higher than last year. Post revised broiler production and trade in 2009 to reflect final exports data.

Broiler Meat Production

Estimates for 2010 remain unchanged from our last report with a projected increase of four per cent in broiler production. This reflects current industry leaders’ optimism for higher exports and firm domestic demand, and generally positive profit margins because of higher domestic soy and corn crops. However, the over-valued Brazilian currency remains of concern to the industry. Post revised 2009 broiler production to 11 million metric tons, half of one per cent lower than the record production of 2008. Despite reduced production, broiler exports increased marginally as well as domestic consumption in 2009.

Consumption

Estimates for domestic consumption of broiler meat remains unchanged for 2010 with a projected increase of 3.5 per cent to eight million metric tons, mostly driven by the increase in disposable income of Brazilian consumers. Post also revised 2009 consumption level.

Trade

The outlook for broiler exports in 2010 remains unchanged. Post updated trade data for 2009 to include final official export numbers. In 2009, total volume of broiler meat exports reached 3.4 million metric tons, a marginal increase from 2008. However, the value of exports dropped by over 16 per cent to nearly US$5.3 billion, due to the effects of the credit crunch in most overseas markets.

Broiler export markets with major increases in 2009 were China (+2,347 per cent), Egypt (+159 per cent), Iraq (+154 per cent) and Angola (+54 per cent), while markets with major declines were Russia (-54 per cent), Venezuela (-47 per cent) and Japan (-27 per cent).

Further Reading

- You can view the full report by clicking here.


April 2010