Bird Flu Sends Chicken Prices Below Production Costs in Brazil

There are no signs of bird flu in Brazil, but its presence is being felt. Bird flu, which has already had a negative impact on chicken sales in Europe and Asia, is beginning to exert pressure in Brazil. And the pressure is not positive.

The Chicken Exporter Association (Associação Brasileira dos Produtores de Exportadores de Frango) (ABEF), reports that while exports remain strong (up 14% in January), it is feeling pressure as it negotiates contracts for future sales and especially on prices.

With bird flu shutting down markets in various countries, supply is greater than demand and buyers want lower prices, points out Ricardo Gonçalves, the ABEF executive president.

According to the Poultry Union (União Brasileira dos Avicultores (UBA), the country exports around half of its poultry production, with a 43% market share of poultry sales worldwide. For example, fully 40% of all baby chicks born in Brazil are exported.

Ariel Mendes of UBA says that the pressure on prices is bad news. It costs US$ 0.55 (1.20 real) to produce a kilo of live chicken, he says, and in São Paulo the market price has already fallen to US$ 0.46 (1 real). "We are operating in the red," he declared.

Exports Up

Exports of Brazilian chicken in January reached 213,700 tons, up 14%, compared to January 2005. Even better news was that the revenue reached almost US$ 281 million, up 41.5%.

There was a large disparity in sales of whole chicken (which was down 6% in volume, and up only 19% in revenue) and chicken cuts (up 26.5% in volume and up 53% in revenue).

However, compared to December, there was actually a drop of 22% in revenue from chicken exports and 13% in volume.

Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian President Vows to Contain Inflation and Maintain Growth

In the latest warning against surging consumer prices in Brazil, Brazilian President, Luiz Inácio ...

Brazil's National Anthem

In Defense of Brazil’s Beautiful and Moving National Anthem

When I told my Brazilian wife about an article I read recently bashing her ...

Brazil Trade Balance Surplus Reaches US$ 22 Billion. Imports Grow 26%

In the second week of July (from the 9th until the 15th), the Brazilian ...

The Risks and Rewards of Investing in Brazil

Is now the time to invest in Brazil, one of the world’s largest developing ...

Brazil Wants an Easier Way to Send Money Back Home

One of the proposals of the Brazilian government, in New York, at a meeting attended ...

Brazil Free to Plant All Tobacco It Wants Despite Signing Tobacco Control Pact

Last year Brazil signed the Framework Convention on Tobacco Control and the government has ...

A EU Warning to Brazil and G20: Open Your Markets If You Want End to Subsidies

No agreement can be reached in agriculture in the WTO (World Trade Organization) talks ...

Brazil’s Beef Exports Grow 78% in 2004

Brazilian bovine meat exports have produced a revenue of US$ 1.555 billion between January ...

Mercosur Is Crumbling, But Brazil Couldn’t Care Less

Mercosur is on flames and Brazil seems absent, according to one of President Lula ...

Experts Call US$ 20 Bi Brazil-Venezuela Gas Pipeline a Pipe Dream

Petroleum and energy experts seriously questioned this week Venezuela, Brazil and Argentina’s project to ...