Brazilian consumers have faced increases of up to 22.5% in poultry product prices in March. The movement strengthened in the second half of the month and is linked mainly to greater external demand.
The war between Russia and Ukraine led global buyers to turn their attention to Brazil. Ukraine is an important global supplier of chicken meat, particularly for Europe and the Middle East.
Proof of that, the United Arab Emirates has become the larger destination of Brazilian poultry in March, surpassing China. The Islamic country imported 42,800 tonnes, a volume 89.9% higher than that imported in the third month of 2021.
“Islamic nations were the first destinations for Brazilian exports of chicken meat in 1975,” says ABPA president Ricardo Santin, adding that the “solid partnership is projected to increase in the long term. “The Brazilian poultry sector complies with halal. This has placed us in a strategic position to support food security in Arab nations.”
Once the demand for Brazilian poultry increased, production costs for farmers – including chicks, feed, and electricity – also rose because of the war in Ukraine. Brazilian final consumers also had to pay more for chicken cuts and offal in the domestic market, according to Cepea (Centre for Advanced Studies on Applied Economics).
In Sao Paulo state, frozen products, at an average of R$7.06/kg or €1,37 in March, saw a monthly increase of 17.7% and an annual increase of 10.4%, in nominal terms. The higher increase was for frozen drumsticks: 22.5% from February to March, to R$7.35/kg (€1,43).
An increase in global demand resulted in a greater search for housing chicks. In Paraná, the main poultry producing state, the product jumped up 9.3% in the month and 11.2% in the year in real terms.
In the case of live chicken for slaughter, the average price is R$5.49/kg (€1,07) in São Paulo state, the largest consumer market, an increase of 13.7% compared to February and an increase of 6.3% compared to March 2021, discounted inflation.