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The storm has arrived in Brazil
- Author: Gordon Butland
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The Revenues from chicken exports in Brazil have increased, totaling 313,000 tons in October, 21% up on the same month in 2006. Revenue totaled US$ 508 million, up 59%. This indicates that exports may close by end of 2007 at 3.1 Million tons with revenue of US$4.5 billion, a record for the sector. Brazilian chicken production is expected to rise by 5.3% next year, to 10.68 Million tons according to the Executive director of the Brazilian Poultry Farming Union (UBA). It is projected that 5.37 billion head of chicken will be slaughtered; 5.4% more than 2007. (Average slaughter of 447.5 million birds per month) Exports are forecasted to grow between 5% and 10% next year, reaching 3.435 Million tons. rise in corn prices has also impacted prices for chicken , as it is the main component in feed for this segments. The average price per tons of chicken exported by Brazil rose to US$1,463 in October, compared with US$1,164 in October 2006. The prices are not expected to drop & as long as feed prices are increasing, producers are obliged to increase their prices. Eventually any price has a certain elasticity but as long as the demand is increasing the prices will not drop.
Yes and this is the same the poultry producers face in pakistan, every now and then.To quote just a single example, the prices of Feed has risen upto 30% over the last year, the price hike can't be passed to the end user and hence, the profitability has suffered a lot!
