Despite Sales Increase Brazil’s Chicken Exporters Are Losing Money

A chicken ranch in Brazil Brazilian chicken exports yielded US$ 2.145 billion in the first half of this year, an increase of 47% in comparison with the same period in 2006. The export volume reached 1.544 million tons, an increase of 24.4%. The data were disclosed by the Brazilian Poultry Exporters Association (Abef).

In the month of June alone, sales totaled US$ 392.4 million, 76.7% more than in the same month last year. Shipments totaled nearly 260,000 tons, a 33% increase over June 2006.

According to the Abef, the expressive growth is due to the basis for comparison, as exports decreased last year as a consequence of a retraction in global consumption, resulting from avian flu outbreaks in Europe, Asia, and Africa.

The organization also states that the ongoing appreciation of the real (Brazilian currency) against the United States dollar has reduced the profitability of foreign sales. The Abef claims that this year, the appreciation of the real has already led to losses of US$ 1.836 billion in export revenues.

Middle East

Brazilian chicken exports to the Middle East yielded US$ 573.8 million in the first half of the current year, an increase of 83.25% in comparison with the same period of 2006. The shipped volume reached 461,800 tons, a 56.2% increase over the first six months of last year.

The rise in sales to the Middle East and the European Union was the main contributing factor to the 47% growth in total chicken exports from Brazil, which reached the record high value of US$ 2.145 billion in the first half of 2007.

Despite the fact that the Middle East already is the main market for Brazilian chicken in terms of shipped volume, the region was the destination that grew the most, both in revenues and in volume, in the first six months this year.

The countries in the region that imported the most during the period were Saudi Arabia, with US$ 209 million in imports, an increase of 32% in comparison with the first half of 2006; the United Arab Emirates, with US$ 128.7 million, 112% more; Kuwait (US$ 75 million, an increase of 100%); Yemen (US$ 39.2 million, 78% up); and Qatar (US$ 25.3 million, 110.8% more).

The European Union ranked second among the markets that grew the most in the first half, with imports at US$ 576.7 million, 81.24% more than in the same period of 2006. Total shipments amounted to 271,500 tons, an increase of 53.7% in comparison with the first six months last year.

Revenues from exports to Africa rose by 14.54%, to reach US$ 96.4 million in the first half of the year. The volume shipped, though, decreased by 11.82% to stand at 113,400 tons.

Asia ranked fourth in the growth ranking, with revenues of US$ 529 million, 12.57% more than in the first half of 2006. Total shipments were 388,200 tons, an increase of 2.71% over the same period last year.



  • Show Comments (5)

  • João da Silva

    [quote] If you really want to know what is going on in Brazil agriculture, just visit regularly the site…….., where you have not only Brazilian newspapers articles, but also some detailed analysis and comments from Brazilian experts in various agricultural fields.

    Thanks for suggesting the site and I will be going through it regularly to get a broader picture. Though I am not a farmer, I have a few friends, who are small farmers and until a 3 years ago, they were doing alright .Now they are in a bad shape. It is interesting to note that you mentioned about Pork and grain too.

    But I think that the fate of small/medium sized farmers is the same as that of small/medium sized businesses!! Thanks to Lula and his beloved chronies.

    What do you think of the Air Crash at S.Paulo. Have you ever flown to Congonhas?

  • ch.c.

    To Joao da Silva !!!!!
    Nothing new that your chicken producers are losing money.
    Not any better for your swine producers.
    And do you really believe that outside Parana, grains farmers are making a ton of money in view of the recent price increase ?
    Barely…is the reality ! Even in Mato Grosso, contrary to what you ALL believe !!!!!

    And what about your Sugar& Ethanol producers ????????? Just look at the share price of Cosan ! Price down 50 % since May 2006, despite the BOVESPA is booming since then !!!!!!

    If you really want to know what is going on in Brazil agriculture, just visit regularly the site…….., where you have not only Brazilian newspapers articles, but also some detailed analysis and comments from Brazilian experts in various agricultural fields.
    You will have a better feeling of what is really going on.
    You may as well watch hundreds of short videos at Globo Rural……..,,7959,00.html?f=programa:Globo Rural&o=1

    And you will see that either “seca” or “chuvoso” is creating far more problems than what you think for millions of small/medium size farmers !!!!!!

  • João da Silva

    [quote]just drop a few 00 here and there [/quote]

    just dropped 00 on my PC and dropping another 00 in yours.

    Are we rich like Lula? 😉

  • forest Brown

    hands in the cookie jar
    whitch person holds the pencil and does the counting

    just drop a few 00 here and there
    boom your as rich as LULA

  • João da Silva

    Despite Sales Increase Brazil’s Chicken Exporters Are Losing Money
    An interesting article. Amazing to know that,in spite of almost 40% increase in prices for poultry products in the supermarkets here in Brazil, the Chicken exporters are losing money. In order to make profit, they have to renegotiate with the buyers in the Middle East for higher prices and if they dont agree, just increase the domestic prices by another 60%!. We idiots will still buy chicken in order to help our “patria” to bring more foreign currency to our coffers.

    btw, when are the Soy bean exporters going to complain about losing money ?

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