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Brazil’s Chicken Exports Fall Due to Bird Flu

Chicken exports from Brazil totaled 1.04 million tons in the first five months of 2006 – 5.52% less than was sold during the same period last year.

According to the Brazilian Association of Chicken Producers and Exporters (ABEF), the decline is due to the drop in consumption in important markets, influenced by the discovery of outbreaks of bird flu in Asia, Europe, and Africa early this year.

Although export volume decreased in the January-May period, the sector earned more revenue in consequence of the price increase on the international market. Sales amounted to US$ 1.23 billion, 0.93% more than what they were worth during the same period last year.

According to the ABEF, the curtailment of poultry production averted a price decline, which could have occurred as a result of excess supply. The association points out that prices are already suffering the negative effects of the appreciation of the real in relation to the dollar.

During the first five months of the year, the major foreign markets for Brazilian chicken were in Asia, where exports earned US$ 399.88 million, 10.6% more than during the same period last year; the Middle East, with sales of US$ 269.09 million (+19.9%); the European Union, with sales of US$ 253.19 million (+7.8%); South America, with sales of US$ 86.26 million (+150%); and Africa, with sales of US$ 70.24 million (+25.5%). Sales to Russia amounted to US$ 82.71 million, 15.9% less than last year.

In May of this year, Brazilian chicken exports totaled 196.47 thousand tons, 17.8% less than in May, 2005. Revenues amounted to US$ 216.78 million, 22.5% less than in May of last year.

Agência Brasil

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