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High Feed Costs Hinder Venezuela Poultry Expansion

8 October 2012, at 1:49a.m.

VENEZUELA - Domestic poultry production and consumption is expected to continue expanding in 2012 and 2013, although imports will take a large share of the market as domestic output is pressured by fixed output prices and high feed costs. The government continues to play an active role as a poultry supplier and importer through its state-owned food distribution networks

According to the Venezuelan Poultry Federation, FENAVI, (Federación Venezolana de Avicultura) the average monthly production of chicken in 2011 was about 80,000 metric tons and it should increase to 86,400 metric tons in 2012.

The average production of eggs for human consumption during 2011 was 1,180,000 boxes of 360 units and it is estimated to increase about four per cent in 2012.

According to FENAVI, the total per capita consumption of all meat in Venezuela is approximately 73.5kg. About 53 per cent of this amount is provided by the chicken sector (38.96kg per capita per year). Poultry consumption is increasing faster than that of beef and pork because poultry remains relative inexpensive compared to other sources of animal protein.

All poultry imports are carried out by the Government of Venezuela, largely from Brazil. Imports of poultry meat were reported at 226,181 tons during 2011 and are estimated to increase in 2012.

Government poultry imports from Brazil are subject to neither tariff nor custom charges, and do not require foreign exchange applications.

Eggs and poultry remain under a price control policy. According to industry sources, the controlled retail price for poultry products does not fully compensate for increasing costs of production.

The government continues to play an active role as a poultry supplier and importer through its state-owned food distribution networks.

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