Brazilian poultry industry outlook positive for 2018
Brazilian poultry producers can look forward to stronger demand for their products from home and international markets this year.
2018 should prove to be a positive year for the Brazilian poultry industry, in contrast to last year, which saw the “worst image crisis in the sector’s history”.
Read the entire report about the Brazilian poultry industry exclusively in the March issue of Poultry International.
Few in the sector will have been sad to say goodbye to 2017 with its Weak Flesh scandal, and consequent hit to chicken meat sales at home and from customers in international markets.
2018, however, would appear to offer much more promise to Brazil’s poultry sector, with hygiene concerns now over, an upturn in the home economy and a strong economic outlook globally.
On the back of this turnaround, the Brazilian Association of Animal Protein (ABPA) forecasts that chicken meat production this year will be 2-4 percent higher than 2017’s 13.1 million tons, but it also notes that there remain several concerns looming on the horizon.
Demand from the home market is expected to increase this year as consumers increasingly feel the effects of an improving economy.
Eight quarters of economic contraction came to end in late 2017, as the Brazilian economy returned to expansion, and forecasts indicate that this growth will strengthen as 2018 progresses. Inflation and unemployment are falling, suggesting that local consumers will feel richer.
Where inputs are concerned, the industry benefited from relatively stable feed costs throughout 2017, and this stability is expected to continue during the year ahead.
While the Brazilian economy may be improving, there remains a degree of political uncertainty, with general elections due to be held in the third quarter of the year.
The Brazilian chicken industry sells approximately one-third of its production into export markets, and demand for product from overseas should be stronger this year. ABPA believes Brazilian chicken meat exports will end 2018 1-3 percent higher than 2017’s 4.32 million tons, and potentially reaching a new record high.