The outlook for the Brazilian poultry industry is positive. The Fiesp (Industry Federation of São Paulo State) expects an increase of 29% in production and 48% in exports during this decade.
The Outlook Fiesp “Projections for Brazilian Agribusiness” has been released this month and includes 18 agricultural activities in the country.
The document expects that production will rise from 13.4 million tons in 2018 to reach 17.3 million tons in 2029. The South region (Rio Grande do Sul, Santa Catarina and Paraná) will be responsible for 62% of the total; Southeast (São Paulo, Rio de Janeiro, Minas Gerais and Espírito Santo) 18% and Center-West 14%.
…Brazil has a good position in the international market.”
With regard to exports, Fiesp estimates international trade will grow from 4.1 million tons in 2018 to 6.1 million tons in 2029. Per capita consumption among Brazilians is also likely to increase by 14% (from 45.9 kg to 52.2 kg/person/year) during the same timeframe. “Overall, Brazil has a good position in the international market. The current growth rate should be sustainable over the next 10 years, with the domestic demand also expected to rise. Both factors should have positive effects on the Brazilian poultry production,” analyses the document.
Large investment for Lar cooperative in Brazil
The Brazilian Lar Cooperativa has announced an investment of € 62 million for new feed mills in Medianeira, Paraná state, amidst strong demand for poultry, mainly from China.
After challenges faced in 2018 due to higher production costs and the truckers’ strike, 2019 was a good year for the Brazilian poultry industry. The African Swine fever has drastically reduced Chinese meat production and increased their demand for animal protein. In addition, political instability between US and China works in Brazil’s favour.
China was the main export destination for Brazil in 2019, but shipments to other destinations increased as well. The export to Saudi Arabia, Japan and Egypt grew substantially. Sales to the European Union however, were even lower than recorded in 2018.
Brazil keeps an eye out for trade barriers and finds them
The Brazilian private sector constantly monitors for international trade limitations and has identified 17 new trade barriers created by different countries all over the world. Between March and May 2020 3 of them hit poultry products.
Egg production is expected to grow 46%, from 120.2 million 30-dozen boxes to 176 million 30-dozen boxes, until 2029. During that time, per capita consumption can grow by 38% to 23.5 dozen/person/year. Brazilian egg exports will increase 10%. That said, this market will be relatively small, with less than 1 million 30-dozen boxes exported per year.
“Foreign demand for Brazilian beef, pork and chicken should continue to rise, which will impact the products’ price in the domestic market and likely direct the consumers’ choice to cheaper protein sources, such as eggs,” adds the report.