Latin America is a net food exporter, with 14% of the world's food production. While wars continue in certain parts of the world, prices go up, and trade is affected; due to the uncertainty of the Chinese economy, chicken and egg production keeps on growing in the region.
Nonetheless, the Latin American region is not an exception in terms of economic issues, such as local currency devaluations (and even appreciations, believe it or not), populists governments here and there, natural disasters, drought in Brazil and Argentina, not to mention animal health issues, such as highly pathogenic avian influenza.
I am in the process of collecting broiler and egg production numbers for WATT’s Poultry International story on Latin American Poultry Top Companies. It is a long process that involves several dozens of emails, questions, inquiries and so on. But just in these initial stages, I can see a different picture compared to the last few years. Although broiler numbers increased and layer numbers had mixed results in 2022, many companies are now reporting better results. So far, layer numbers in certain companies are outstanding.
I do not have specific data yet that I can report now, it is too early, and the year is about to end, but producers in countries such as Brazil, Colombia and Mexico have very positive early figures. If these numbers climb, the whole region will do the same. This will consolidate its position as a world food producer.
Exports are also looking good. Take a look at Brazil, expecting to reach the 5 million metric ton (MT) mark of chicken exports by the end of the year. I blogged on Ecuador taking the first steps in exporting chicken. Colombia is also tirelessly working on exporting too, not to mention Chile, which recovered exports after the avian flu outbreaks, as well as Argentina. Mexico is doing very well in other animal protein exports, although not in broilers.
Regarding avian flu, in spite of the region-wide impact, the disease has not been a real issue this year in countries like Mexico, particularly in the way it has been handled.
Bottomline – we expect a good 2023 and maybe a better 2024.
What do you think?
