Chicken exports may offset the adverse scenario Aurora is facing with pork

Aurora Alimentos, Brazil’s third-largest poultry and pork company, expects chicken meat exports to climb 14% this year, taking advantage of commercial possibilities left by competitors such as the United States and Ukraine, according to the cooperative’s director of markets, Leomar Somensi.

With poultry exports increasing, Aurora expects to offset some of the adversities seen in the pork segment, for which 2022 shipments are expected to remain stable given the reduced demand from China, the largest global importer.

“There is no doubt the chicken scenario is more favorable,” said the executive when asked about the possibility of one animal protein compensating for the performance of the other.

He also commented that chicken meat already counts with a greater representation than pork among Aurora exports and, as opposed to pork, the moment is favorable for the segment.

“The conflict between Russia and Ukraine made the international arena more favorable for chicken meat exports since Ukraine exported this product (to Europeans), making them look for different suppliers on the global market,” he said.

According to a Reuters story from early March, Russia’s invasion of Ukraine has increased meat industry costs thanks to increased grain prices used in feed. Still, a drop in Ukrainian chicken exports could eventually open a gap that slaughterhouses in Brazil could fill.

The director also highlighted that US farms have health problems that affect their performance in the international market.

Americans are grappling with the avian flu disease, which has killed more than 19 million laying hens on commercial farms throughout the country this year, the largest outbreak since 2015, wiping out around 6% of the country’s livestock, according to Reuters calculations.

The problem is even worse in France. More than 13 million birds have been slaughtered since the end of November, according to the French Ministry of Agriculture, making it the country’s biggest bird flu crisis.

In parallel, chicken meat exports from Brazil advanced 5.7% in March compared to the previous year, totaling 418.8 thousand tonnes.

In the first quarter, the increase was 10.2% compared to the same period in 2021, totaling 1.142 million tonnes, according to the ABPA sector association.

The director of Aurora said that the cooperative registered a 14% growth in protein shipments in the first quarter, and should continue with results above the market average throughout the year.

In 2021, Aurora shipped 310,000 tonnes of chicken and 240,000 of pork, Somensi said.

According to the executive, Brazil now has a “great” worldwide market involvement in the chicken sector, which does not exist in the swine sector.

According to him, Aurora already sells the protein to the United States, a market deemed relevant due to the high sanitary standards for purchasing. Moreover, a portion of the cuts that would otherwise go to China is now being allocated to other nations such as the Philippines.

Following the devastation of its herd by African swine fever, China has recomposed its production level to one that exceeds local demand, resulting in a fall in overseas acquisitions this year.

Source: Money Times

To read the full original article, please go to:

https://www.moneytimes.com.br/na-aurora-avanco-na-exportacao-de-frango-pode-compensar-cenario-adverso-para-carne-suina/

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