Broiler production in Brazil adjusted

Data released by the organization SECEX confirms a 7% decrease in exports in the first half of this year (1.05 million mt) compared to the corresponding period in 2005. The problem has been exacerbated by a 15% appreciation of the Brazilian Real against the US dollar and Euro. The Broiler Industry in Brazil has responded to the decline in exports by reducing placements of chicks and rationalizing production capacity.

Virtually all integrators have shelved plans for expansion with a net reduction in weekly production to 333 million broilers in April 2006 which represents 90% of the output during April 2005. With continuing international concerns over avian influenza, it is anticipated that cooked poultry meat will become a more frequently traded product.

During the first five months of 2006 Brazil exported 47,000 metric tons of cooked products representing a 62% increase over the quantity shipped during the corresponding period in 2005.

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