Brazil benefits during tough poultry times
The world poultry industry is facing difficult times as
ongoing avian flu outbreaks and high maize prices take their
The US maize price increase of the last few weeks could cost the industry
US$12bn worldwide, which will in turn be passed on to consumers in the form of
higher prices. For the time being, however, avian flu has benefited BrazilÂ´s
poultry meat industry, dismissing estimates from the Brazilian association of poultry meat exporters, ABEF
2007 will see a repeat of the 2005 export of 2.6 million mt as
The poultry industry in countries affected badly by avian flu, such as
Egypt, will take at least a year to recover after the disease has been
eradicated. Gordon Butland, president of Thai-based Global Poultry
says he does not anticipate prices returning to their levels of
2005, however, but will certainly be improved on 2006 levels.
Butland added that Sadia
Â´s 2006 profits demonstrated the solidity of the large
Brazilian companies. Virtually all other companies in the industry would be hard
pressed to match SadiaÂ´s performance. Even without avian
, the years in which 500-800 000 mt more poultry meat were exported each
year by Brazil, have come to an end and will probably never happen again.
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