ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Soaring Feed Prices Hit Brazilian Poultry Industry

20 August 2012, at 10:12a.m.

BRAZIL - The Brazilian Poultry Union (UBABEF), governing body of Brazilian poultry sector, reports that the poultry industry is currently experiencing one of the worst crises in history, due to soaring feed prices and a shortage of credit for companies.

According to the USDA there has been a reduction of 98.8 million tonnes of maize in the last forecast for the season 2012/1013.

As a result, corn prices have been soaring in international markets, causing huge problems to Brazil poultry producers.

Similarly, soybeans are also suffering as a result of drought, which is also having a knock-on effect to poultry producers.

Internally, the past six months recorded increases of 80 per cent in soybean prices and 40 per cent to the cost of corn. Together, the two inputs represent over 60 per cent of total production cost.

Producers have noted the effects of high feed costs, with some having to halt production.

The UBABEF has requested that the Federal Government takes action to free up credit for producers affected by soaring feed costs.