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Brazilian Poultry Production Estimates Up in 2012

by 5m Editor
24 February 2012, at 7:20am

BRAZIL - Brazilian poultry production for 2012 has been forecast to rise but only by three per cent compared to last year.

Domestic demand and a small recovery in exports are considered to be the main drivers behind this rise in production, according to the USDA's Brazil Poultry and Products Semi-annual report.

Although the initial forecast for growth in broiler production was five per cent, it is now estimated to grow by only three per cent. This is a result of an overvalued Brazilian currency and restrictions from trade partners. Another factor leading to this is a slowdown in the rate of growth of domestic consumption combined with higher costs of production due to higher corn prices.

Domestic consumption of broiler meat during 2012 is also forecast to grow by only three per cent. Broiler meat remains the most affordable meat compared to pork and beef.

Broiler meat exports are forecast to grow by a mere three per cent in 2012. The growth in exports is likely to be driven by higher sales of whole broilers in general. However, exporters have three major concerns affecting the outlook for broiler exports: continued overvaluation of the Brazilian currency, uncertainties derived from the world financial crisis, mostly in Europe, and specific issues with major trading partners such as the Russian Federation.

Further Reading

- You can view the full report by clicking here.