Brazilian chicken exports are likely to increase by about 3 percent this year after falling in 2012 because of high feed costs, the country’s poultry association, UBABEF told Reuters News Service this week. The association sees better demand from countries in Asia and Africa and a greater emphasis on processed products to raise the value of sales and to compensate for high grain prices in the past year. “This year, we want to improve the quality of chicken meat and add value to exports,” said Francisco Turra, president of UBABEF.
In 2012, more expensive processed chicken products accounted for just 5 percent of Brazil’s total export volume, but that amount could increase as companies like BRF Brasil Foods and Marfrig further emphasis sales of processed products. Turra said he expected increasing demand from emerging markets in Africa to boost sales in 2013. Brazil also hopes to conquer Asian markets like India, Indonesia and Malaysia.
Brazil accounts for 39.7 percent of the world’s chicken exports, followed by the United States with 32.5 percent. Brazil lost a bit of market share last year, as it had accounted for 41.4 percent of global exports in 2011. Brazil’s chicken production in 2012 fell 3 percent from 2011 to 12.645 million metric ton. It was the first year output had fallen since 2000. Exports in 2012 were down 0.6 percent from 2011.
Turra said he believed grain prices will remain firm for the first half of 2013 despite expectations for a record Brazilian soybean harvest and a strong corn harvest to be available to international markets soon.
In August, Turra reported that 20 of the association’s 80 members, who range from small producers to large international exporters, were in financial difficulties because of the cost of feed.
