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:

You May Also Like

For US Foundation Brazil Cannot Invoke Health Emergency to Break AIDS Drug Patent

With a number of other non-profit groups, ITSSD (Institute for Trade, Standards, and Sustainable ...

Organic Global Community Gathers in Brazil for BioFach Latin America

Organic products from 12 countries will be presented by 300 exhibitors during the BioFach ...

70,000 Brazilians Are Prostitutes Overseas. Police Busts a Little Gang in Spain

There are 70,000 Brazilian women working as prostitutes in Japan, Europe and South America. ...

Brazilian Congress Snubs Lula and Probes Corruption by His Cronies

Brazil’s Congress will for the first time investigate alleged corruption cases in the administration ...

AIDS: Break Patents If Need Be, Says Brazil to Other LatAm Countries

Latin American countries that can’t afford increasingly expensive AIDS medication should consider sidestepping foreign ...

G8 Has No Reason to Exist, Brazil’s Lula Tells “Le Monde”

Nicolas Sarkozy, the president of France, and visiting Brazilian President Luiz Inácio Lula da ...

Haiti’s Brazilian-Led Occupation Force Might Leave Soon. Good Riddance!

As one of his first measures in office, Brazilian Defense Minister Celso Amorim plans ...

Despite Controversy Brazil on Way to Become World’s Top Soy Exporter

Brazil has become the world's number-two exporter of soy beans just behind the United ...

In Brazil They’re Sure They Hit Bottom. The Only Way Is Up Now

In Brazil and Latin America the business climate experienced a slight improvement in the ...

Capital Goods Lead Brazil’s Little Growth

After two months of downturn, industrial production in Brazil was up 1.5% in March, ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`