Covid-19: Impact on the global poultry sector

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Brazil: Slight increase forecast for 2020 poultry sector

Brazilian poultry sector is about to close 2020 with positive numbers, despite Covid-19 pandemic. Projections presented by Brazilian Animal Protein Association (ABPA) point out increases in export volumes of 0.5%, as well internal production by 4.2%.

Poultry meat exports

Brazilian chicken meat production is expected to reach up to 13.8 million tons in 2020, up 4.2% from the 13.2 million tons produced in 2019. From this total, exports account for 4.23 million tons, or 0.5% higher than last year, with 4.21 million tons.

Ricardo Santin, ABPA´s president, sees poultry production and consumption rise to historical records. Photo: Edi Pereira
Ricardo Santin, ABPA´s president, sees poultry production and consumption rise to historical records. Photo: Edi Pereira

Poultry meat production

Due to a relatively large production increase, the total volume destined for the domestic market is 9.6 million tons, 6.3% higher than in the same period of 2019. Most of the production is absorbed by increased domestic consumption, per capita consumption is expected to reach 45 kilos in 2020, a 5% increasing over 2019, with 42.84 kilos.

Despite a highly challenging year, with costs at historical levels and economic and social impacts by the pandemic, Brazilian poultry farming did tremendously well on both internal and external markets.”

Egg production

Doubling over the last decade, egg production is forecasted to reach 53.5 billion eggs in 2020, 9.1% higher than recorded in 2019. Per capita consumption is expected to cumulate to 250 eggs this year, 8.7% higher than in 2019.

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Hictorical records for poultry sector

According to Ricardo Santin, ABPA´s president, several of the figures are historical records. This is the case of chicken meat production and per capita egg production and consumption. “Despite a highly challenging year, with costs at historical levels and economic and social impacts by the pandemic, Brazilian poultry farming did tremendously well on both internal and external markets,” says Santin.

Santin pondered that, as in 2019, the African Swine Fever (ASF) health crisis continued to boost Brazilian poultry and pork exports due to its impact on pig production in Asia and Europe. “Asian nations have consolidated themselves as the main importers of poultry and pork meat from Brazil and were the main vectors of the year’s result in both sectors,” he explains.

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Covid 19

Another major impact factor in the productive sectors was the Covid-19 pandemic. “In the domestic market, the Federal Government’s assistance programme was pivotal for assuring population´s purchase power despite the reduction in economic activity,” Santin adds. Regarding the international market, the pandemic has reduced some of the most important trade relations with Islamic destinations, such as the United Arab Emirates and Saudi Arabia. “With the decrease in Covid cases and the gradual return of tourism in these nations, we have observed a significant improvement in the sale to these markets,” Luis Rua, markets director of ABPA.