Broiler production in Brazil looks set to increase by 5% in 2016 to nearly 13.5 million metric tons, predicts a USDA report.
Brazil has seen a higher world demand for its poultry this year, in particular due to the AI issues experienced in the United States. Taking into consideration a devaluing Brazilian currency, down nearly 30% this year combined with a decline in feed costs, brazilian poultry remains very low value.
Domestic consumption of broiler meat in 2016 is projected to increase by 2% despite the current economic recession in the country.
Broiler production costs
The average cost of broiler production in 2016 is forecast to decline by 3-4% due to higher availability of feed at stable prices. Items pressuring production costs in 2015 are electricity, labour and transportation, while costs of nutrition and day-old-chicks are declining.
New markets for Brazilian broilers
In terms of exports the report forecasts broiler exports in 2016 to expand by 5% over this year´s record. The growth in exports will likely be driven by a continued devaluation of the Brazilian currency combined with the continued impact of the Avian Influenza in several world markets, which is benefiting Brazilian exporters. In addition, the Brazilian government has recently opened new markets for Brazilian broilers, such as Pakistan, Malaysia, Myanmar, and Mexico (re-authorisation for exports until 2016).