Brazil optimistic about present and future of poultry

"This has been a year of overcoming" for the animal protein industry, and "of continuing to work in the midst of the pandemic," said Ricardo Santin, Brazilian Association of Animal Protein (ABPA) executive president.

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Yurii Bukhanovskyi, Bigstock
Yurii Bukhanovskyi, Bigstock

"This has been a year of overcoming" for the animal protein industry, and "of continuing to work in the midst of the pandemic," said Ricardo Santin, Brazilian Association of Animal Protein (ABPA) executive president.

He made the point with optimism that with the first COVID-19 vaccination having taken place, everything seems to indicate that the first step has been taken toward life returning to normal.

In the face of the COVID-19 pandemic, Santin stressed the importance of not stopping the consumption of animal protein, not only because of nutrition, but because of immunity. He said that even in the hospital you get "chicken broth with eggs" to get recovered.

Referring to the poultry industry and exports from Brazil, he said they are "a pride" for the country, as they have generated $141 billion in income over the past 20 years.

Although with good expectations for 2021, with a GDP growth of 2.8%, inflation of 3%, interest rates of 3%, and an exchange rate of BRL5 to the US dollar, production costs have increased. Today, chicken costs 36.33% more to produce. The increase in the cost of inputs leads to a new price list, so Christmas dinner will be more expensive.

Egg production increases

Brazil currently produces 1,300 eggs per second. With this, the ABPA president stressed that from 2019 to 2020 production is expected to have increased by 9.1%, i.e., to 53,533 million eggs. With this amount, per capita consumption increased from 230 to 250 eggs, which is a variation of 8.7 percent.

In terms of exports, ABPA and Secretariat of Foreign Trade (SECEX) data show a 31.2% decrease when compared to 2019 with 2020. United Arab Emirates remains the largest importer of Brazilian eggs, with 44% of the volume, followed by Argentina and Uruguay with 8% each. Mato Grosso is the state that exports the most, with 35% of the total, followed by Rio Grande do Sul with 25%.

Production is projected to increase by 5% to 56,210 million eggs by 2021, as well as per capita consumption to increase to 265 egg and exports to increase by 50%.

Strong growth in chicken meat

Despite the differences between production, consumption and exports, there are good figures at the end of the year. This year production is expected to increase between 3.8% and 4.2%, or between 13.75 and 13.8 million metric tons (MT). This means that consumption increases by 5% to 45 kg per person.

In terms of exports, the data are less encouraging, as difference between 2019 and 2020 will reach a maximum of 0.5%, representing some 4.23 million MT.

China became the largest importer of Brazilian chicken with 17% of exports. The country imported 20% more (January to November) when compared 2019 to 2020. It is followed by Saudi Arabia with 11% and Japan with 10%.

By state, Paraná exports the most, with 40% of the total, followed by Santa Catarina with 23%.

ABPA expects 3.5% more chicken to be produced in 2021, between 3.3% and 5.5%, up from 2020. They also expect an increase in exports of 3.5%, and per capita consumption of between 45 and 47 kg, or a 4.4% increase, depending on the situation in the country and the world.

ASF and pork

In the case of pork, production is expected to increase by 8% in 2020, with a total of about 4.3 million MT. Per capita consumption remains at 15.3 kg per person.

As for exports, Brazil broke the 1-million MT of pork mark shipped to other countries, which could represent up to 37% more than in 2019. China accounts for exactly half of pork exports, an increase of 115% in 2020. Hong Kong follows with 17% of exports.

Other Asian countries, such as Singapore and Vietnam, increased by 54% and 211%, respectively, their imports from Brazil, reflecting the situation with the African swine fever (ASF) outbreak.

ABPA plans to produce up to 4.4 million MT in 2021, or 3.5% more than in 2020.

ABPA continues working

ABPA has continued to work on the pandemic in other respects. For example, Luis Rua, ABPA's world markets director, reported that in 2020 more than 80 plant facilities have been authorized by different countries. However, he emphasized the need for trade agreements to open up more markets.

For the Brazilian poultry and swine industries, domestic customers still are their main client. That is why ABPA focuses on studying the domestic chicken, eggs, and pork consumer. Thus, Isis Sardella, manager of commercial promotion and marketing, spoke of the research of consumer habits that they are carrying out. They are studying, in addition to the classic metrics (geographical area, age and social class) consumption habits as a consequence of the pandemic, conducting analysis of myths and evaluating the main factors of influence at the time of purchase, packaging and the institutional image of the sector at consumption.

Finally, the ABPA extended the invitation to attend the International Exhibition of Poultry and Swine Industries (SIAVS) in Expo Center Norte in SĂŁo Paulo, to be held August 3-5, 2021. The SIAVS is the most important political, technical, and business event of these sectors in Brazil. In 2019, more than 20,000 visitors from more than 50 countries attended, with 170 exhibitors and 1,600 producers.

Finally, the ABPA, as a member of the International Poultry Council, said it committed itself to focusing on 5 of the 17 UN Sustainable Development Goals (SDGs) by motivating its partners to implement measures that can contribute to their achievement.

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