Improving prospects for Brazil’s poultry sector

After several challenging years, Brazil’s poultry sector has shown signs of recovery in 2019, and the prospects for 2020 and beyond are positive.

(Afonso Lima | Bigstock)
(Afonso Lima | Bigstock)

After several challenging years, Brazil’s poultry sector has shown signs of recovery in 2019, and the prospects for 2020 and beyond are positive.

Brazilian chicken meat production is expected to reach 13.15 million metric tons (mmt) in 2019. This would represent an increase of 2.3% from the previous year’s figure of 12.85 mmt, according to the Brazilian Association of Animal Protein (ABPA).

Along with a 2.2% rise in domestic consumption, exports are forecast to be 2.4% higher than in 2018 at 4.2 mmt.

Main driver for the expansion in Brazilian exports of chicken meat is the loss of Chinese pork production following the devastation caused by African swine fever, according to ABPA president, Francisco Turra. Chinese consumers have shifted meat purchases from pork to poultry meat to some extent, opening up opportunities for exporters. Brazil has achieved a 28% increase in its trade with China, which now accounts for 14% of the country’s total chicken meat exports.

Turra described the turnaround achieved by the Brazilian animal protein sector in 2019 as “extraordinary” after four “difficult” years.

Challenges during this period peaked with the Operation Weak Flesh crisis, which led to the removal of export permits from several of the country’s leading poultry meat companies. By the start of this year, there were first signs of recovery in the trade. However, the investigation is still on-going.

In value terms, ABPA puts chicken meat exports for the year to the end of November 6.1% above the previous year at US$6.36 billion. Of this total, 34% was sent to Asian destinations. The Chinese market accounted for 14% of total exports, followed by Saudi Arabia (11%), and Japan (10%).

Brazil’s top chicken meat-exporting states in 2019 were Paraná, Santa Catarina and Rio Grande do Sul.

Prospects for 2020

Speaking at the same press conference last week, ABPA executive director and future president Ricardo Santin said that output growth is expected to continue over the coming years. New export opportunities are likely to open up across Asia, he said. At the same time, Chinese demand for imported meats will remain strong for some time to come.

Santin forecasts Brazil’s chicken meat production will expand a further 4-5% in 2020 to 13.7 mmt, and exports by 3-6% to 4.5 mmt.

Egg producers focus on domestic market

In contrast to the chicken meat sector, the Brazilian market is the main focus for the country’s egg producers.

ABPA estimates 2019 output at 49 billion eggs—around 10% more than the previous year. Annual per-capita consumption over the same period has risen from 212 to 230 eggs.

With a membership of more than 140 companies, ABPA represents the political and economic interests of the Brazilian poultry and pig industries. It is responsible for exports worth more than US$8 billion. As well as opening up new export opportunities for these sectors, it sets standards covering quality, sanitary status, and production sustainability.

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