Brazilian poultry producers call for govt support

02-08-2012 | Home | News

The recent price increases of corn and soybeans in Brazil have prompted the Brazilian Poultry Union (UBABEF) to call on the government for support to minimise the impact on farmers.

“The increase in overall costs of these inputs are causing a devastating effect on the industry. The industries need assurances in grain stocks, such as soybean meal, until the end of the year. For this it is necessary to prompt government action through auctions and Flow Production Programs (PEPs) for the most affected poultry. The poultry industry also needs greater access to credit. It is unfair that the banks will not release more resources for an industry so important to the national economy,” said the CEO of UBABEF, Francisco Turra.

The poultry industry employs more than 720,000 people directly and an estimated 3.5 million jobs are generated directly and indirectly by the sector.

“The increases in grain costs have already reached 70% this year. Poultry producers are unable to afford these increases. Likewise, they can not keep stocks, given the lack of credit. Inevitably, the cost increases will be passed on to consumers, both in Brazil and abroad,” Turra said.

The country’s’ Minister of Agriculture, Livestock and Supply, Mendes Ribeiro Filho assured Turra that he is aware of the difficulties of trading poultry and is looking at ways to support the sector.