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:

Ads

You May Also Like

August 1995 Cover Story

Brazilian teenagers and Brazil’s generation X are not different from their counterpart in the ...

Brazil Favorite to Win World Cup Followed by Argentina

With the draw for the 2006 World Cup taking place today in Leipzig, Germany, ...

Brazilian Equities Go Down on Rate Hike Fears

Latin American stocks dropped, alongside lackluster trading in U.S. equities following two days of ...

Brazil’s CVRD Issues Record US$ 1 Billion in Bond to Foreigners

Brazil’s Vale do Rio Doce Company has just announced the sale of US$ 1 ...

A Lufthansa airplane

Brazil’s TAM to Share Code and Much More with Lufthansa

Just a few days after announcing an alliance with US's number 2 United Airlines, ...

Kyoto Starts. Brazil Gives Example.

One of the internationally agreed mechanisms for reducing greenhouse gas emissions was set into ...

Opening the Gates

Many journalists and media executives tend to believe that opening the media to foreign ...

300 Foreign Firms in Brazil’s Amazon Looking for Business

Presidents Luis Inácio Lula da Silva, from Brazil, and Hugo Chávez, from Venezuela participate ...

Brazilian Presidential Candidate Serra: a Life of Opposition and Solid Education

Brazilian presidential candidate José Serra was born into a working-class family of Italian immigrants ...

Bargain Hunters Boost Brazilian Stocks by Over 7%. LatAm Leaders Lambast US

Brazilian investors went back into a buying spree, this Tuesday, September 30, in search ...