Stable feed prices in Brazil benefit poultry
The Brazilian poultry meat sector seems to flourish again, due to decreased feed prices. This is reflected in 27% more exports in 2007 and 20% higher prices for the meat. Total exports are now expected to reach over US$3.2 billion this year.
In many countries the strengthening demand and prices for maize and soya have resulted in sharp hikes in feed prices. However, Brazilian producers are experiencing the opposite. Farmers are now paying 80% less for their maize, as well as 40% less for their soya meal, than at the beginning of the year.
A record maize crop in Brazil, coupled with a larger than anticipated crop in the US, has ensured that demand – which has not grown quite as fast as was anticipated – is being met. Although the Brazilians do not suffer from expensive feed, they are still being hurt by the strength of the Real against the $US.