Sector expects to close 2019 with increased production of chicken meat

Chicken meat production in the country should reach 13.15m tons in 2019, 2.3% more than the previous year. Exports are expected to accumulate 4.2m tons, up 2.4% from 4.1m tons in 2018. From January to November, exports reached US$6.36bn, 6.1% more than in the same period last year. The data were released today (12/12) by the Animal Protein Association (ABPA).

In the case of pork, production is expected to rise from 3.9m tons in 2018 to 4.1m tons this year, up 2.5%. Exports should increase by 14.5% from 646,000 tons to 740,000 tons.

In terms of value, pork export revenues totaled US$1.41bn from January to November, reflecting an increase of 27.9% over the same period last year. In volume, 674,200 tons were exported in this period, 14.4%, more than in the same period last year.

The data also show that egg production should total 49bn units in 2019, 10% more than in 2018. Despite the increase in production, exports are expected to drop by 30% in volume, from 11,600 tons to 8,000 tons.

Prices

According to the entity, the price of Brazilian products was influenced by the strong health crisis in China, with outbreaks of African swine fever, which increased imports of this type of protein by that country. “Rising beef prices, also influenced by climate factors, have boosted pork and poultry prices,” said ABPA.

Regarding the price increase for poultry and pork at the end of the chain, ABPA President Francisco Turra emphasized that when demand is much higher than supply, the price cannot be expected to rise. “But I want to point out that in poultry and pork we have spent four years with stable, low prices, huge losses, closed factories that have now reopened. Obviously the price will be a little higher. It is a matter of market,” he said.

According to Turra, in the last twelve years no year has been as surprising and positive as 2019 for the sector. “We had moments of crisis, we spent moments when production not only stabilized, but even fell slightly. We had difficulty exporting to open some markets and this year, due to what happened with the African swine fever in China and in 20 other countries, a paved way has opened for protein as a whole.”

Turra assured that, even with foreign demand growing, there will be no shortage of domestic market, because 70% of poultry production and 80% of pork production stays in Brazil, which is the largest market in the sector. “In terms of eggs, we have a quantity that I would say 99% of production is for the domestic market. It’s a matter of adjustment, a little increase of possible production.”

Source: Agência Brasil

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