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 toll.

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 Brazil´s poultry meat industry, dismissing estimates from the Brazilian association of poultry meat exporters, ABEF, that 2007 will see a repeat of the 2005 export of 2.6 million mt as pessimistic.
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 Strategies 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´s 2006 profits demonstrated the solidity of the large Brazilian companies. Virtually all other companies in the industry would be hard pressed to match Sadia´s performance. Even without avian flu, 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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Editor WorldPoultry

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