Brazil breaks records for chicken, egg, pork production

The poultry and swine sectors in Brazil broke a number of records in 2015, including for the production and exports of chicken, the production and domestic consumption of pork and in the production and domestic consumption of eggs, according to the Brazilian Association for Animal Protein (ABPA). Chicken meat is No. 4 on the country’s list of top exports.
The good news continued with the opening of new markets for chicken and eggs and a reopening of other markets for Brazilian pork. Major importers authorized more of the country’s plants, and exchange rates also favored Brazilian exports over the last year.
As a result, ABPA forecasts that 2015 exports of poultry and pig meat will reach a value of BRR25 billion (US$8.7 billion).
There is also good news for Brazil’s farmers from home, with domestic consumptionremaining high for chicken, eggs and pork as beef prices stay high.
Producers have faced severe challenges this year, however. These have included rising corn and soybean prices, which pushed up production costs, especially in the second half of the year. Exports were also hampered by truckers’ strikes, agricultural federal tax and port closures due to bad weather.

Chicken meat forecasts

According to ABPA, production of poultry meatin Brazil should reach 13.136 million tons in 2015, 3.5 percent more than the year before. This would put Brazil ahead of China in the global rankings of chicken producers at No. 2 position.
At home, chicken meat consumption is forecast to reach 43 kilograms – more than 1 percent higher than in 2014.
Looking ahead to 2016, output is forecast to rise between 3 and 5 percent.
“This further growth will come from the openingup of new markets for Brazilian chicken and organic growth at home from the rising population and expected reversal of Brazil's economic situation,” commented ABPA’s chief executive, Francisco Turra.
Brazilian exports of poultry meat are forecast to be 4 percent higher than 2014 at 4.26 million tons. While the value of those exports is 25 percent higher in local currency at BRR23.7 billion, there is a fall of 11 percent in U.S. dollars at US$ 7.1 billion.
“This year, in addition to the opening of new markets in Malaysia and Myanmar, China authorized a further two plants for exports, bringing its total to 30, and Mexico has added 16 new plants, making a total of 20 authorizations.
For2016, the industry expects further growth in export volumes of between 3 and 5 percent
“We anticipate the opening of Taiwan and the Dominican Republic as export markets and further authorization of plants to export to China,” said ABPA vice-president for poultry, Ricardo Santin. “There is also interest from Australia, New Zealand and Cambodia and the WTO has set up a trade dispute panel to consider Brazil’s case against Indonesia.”

Turkey meat prospects

ABPA forecasts put Brazilian production ofturkey meat at 329,000 tons in 2015, 0.1 percent more than the previous year.
Exportsare expected to reach 133,000 tons this year, which represents an increase of 6.3 percent in volume from 2014. This would put revenue for the year up 21 percent in local currency at BRR950 million but down 13 percent in US dollars at US287 million.

Expectations for the Brazilian pig meat sector

Pork productionis forecast to be 3.643 million tons in 2015, 4.9 percent above the year-ago figure.
Further growth of between 2 and 3 percent is forecast for next year. According to Turra, this will come about as the result of an increase in exports and a small increase in per-capita domestic consumption.
Average uptake is thought to have reached 15 kilograms for the first time in 2015. This would represent an increase of 2.7 percent from 2014.
For 2015, Brazilian pork exports are forecast to 550,000 tons, which is 8.9 percent more than the year before. While the value is up 14 percent in local currency compared to 2014 at BRR4.3 billion, the US dollar value is 20 percent lower at US$1.2 billion.
“Last year, accelerating sales for Eastern Europe pushed the sales figures to historic highs,” said Turra. “This year, we saw a readjustment of price levels to equivalent levels in previous years, which explains the decline in revenue.”
“This year, the highlight was Russia, accounting for about 45 percent of the total exported by the country, with an average rise of 30 percent on purchases this year compared to 2014,” commented ABPA vice president for the pig industry, Rui Eduardo Vargas Saldanha.
For2016, the industry is forecasting growth in pork exports volumes of between 2 and 3 percent.
“In addition toimproving sales to Eastern Europe and major buyers in Asia - Hong Kong and Singapore - two new plants are expected to influence positively shipments to China. There are also high expectations for the opening of the market in South Korea, Australia, New Zealand and European Union,” said Turra.
“There are also opportunities in South Africa and for improved trading with China,” added Vargas.

Brazil pig, poultry groups fight to keep exports rolling

An injunction by Brazil’s animal protein association to prevent interference with its members’ vehicles by strikers has been extended to cover additional vital routes for exports of meat, particularly to Russia before its ports are closed by the arrival of winter.
Injunctions it obtained against blockades on federal highways by striking truck drivers in February this year still apply, according to by the Brazilian Animal Protein Association (ABPA), which represents the country’s chain of producers and exporters of poultry meat and pork. Both loaded and empty vehicles are covered by the ruling so there is no interruptions in supplies of meat to the country’s ports. In the last week, the injunctions have been extended to other important routes.
On average, Brazil exports approximately 15,000 tons of chicken worth US$24.8 million and 2,700 tons of pork with a value of US$5.5 million every day.
ABPA recently reported that Brazilian chicken meat exports in October were down by 11.2 percent from the same month last year at 329,500 tons. This was valued at 9.1 percent more than last year in the local currency (BRL2.022 billion) but 31 percent less in U.S. dollars at US$521.4 million. Bad weather and strikes were blamed for the falls.
“Demand is there and the business is firm,” commented ABPA chief executive Francisco Turra. “However,internal problems during the month impacted the sector.One example was the closure of the port at Itajaí, the main point of exit for Brazilian chicken meat exports, due to heavy rains. Other ports were also affected. At the same time, we bore the effects of the strike over the federal agricultural tax, which persisted during the first half of the month.”
Despite these issues, poultry meat shipments remained above the levels of last year(January to October), with an overall increase of 3 percent from the same period of 2014. Shipments over the period amounted to 3.515 million tons. This represented an increase in value in local currency of 24.4 per cent at BRL19.320 billion. In dollar terms, there was a decrease of 11.6 percent at US$5.960 billion.
“Analysis of the month of October by market performance does not indicate a slowdown in a particular market but rather a proportional fall, confirming that internal problems are the cause of the downturn,” said Ricardo Santin, ABPA vice-president for the poultry sector. “However, we are still on course to achieve the growth forecastsfor this year.”
“The month of November will be crucial for the industry to recover losses from the first strike of truck drivers, in addition to the stoppage of the work of agricultural federal tax, which took place between September and October,” added Turra. “This month, major importers such as Russia, raise its imports for stockpiling to face the winter, when the activity of ports is suspended due to cold and ice. The strike has negative effects on the industry and, at this point, we fear that they may be even worse than those suffered earlier this year. We hope, therefore, for quick action by the government.”

Brazil’s poultry exports fall sharply in September

The volume of poultry meat exported by Brazil was slightly lower in September. At 366,400 tonnes, shipments were 0.5 percent lower than in September 2014.
However, the value of poultry exports recorded a far greater fall of 18.9 percent to stand at US$592 million. In local currency, which has almost halved in value against the dollar over the past 12 months, exports were 35.8 percent higher at BRL2.3 billion, said the Brazilian Association of Animal Protein (ABPA).
ABPA notes that September’s downturn was largely due to the federal inspector’s strike, but emphasized that shipments to its main export markets held up well.
Commenting prior to the release of the finalized export figures, ABPA Executive President Francisco Turra commented that the slight fall in exports recorded during the month was directly attributable to the livestock inspectors’ strike, which hit poultry meat exports from the very first day of strike action, and resulted in the loss of 10 working days throughout the month.
Shipments to Hong Kong were particularly badly affected during September, down by 26 percent to 16,000 tonnes, while those to Angola were 67 percent lower at 3,600 tonnes.

Export market variation

Not everything was negative for the Brazilian poultry industry during September, which recorded a strong performance in some of its major markets.
“The volumes shipped to our main importers were positive, helping to reduce the impact of the strike,” Turra said.
Pointing to China, he noted that shipments, at 26,800 tonnes, were 33 percent higher than in September 2014, while Saudi Arabia, Brazil’s biggest poultry meat export market, received 63,200 tonnes, an increase of 10 percent.
While Brazil’s poultry exports year to data are 4.8 percent higher by volume, and the strike is not expected to significantly impact the total exported over 2015 as a whole, by value they have fallen by 9.1 percent to US$5.4 billion.

Brazil egg farmers urged to seek battery cage alternatives

Brazil is to start paying more attention to the welfare of laying hens after the recent visit to Scotland of Lizie Buss, coordinator of the Animal Welfare Commission (CTBEA) of Brazil’s Ministry of Agriculture, Livestock and Supply.
While CTBEA represented Brazil at the Better Training for Safer Food (BTSF) training program, Buss found out more about the non-cage systems used in the European Union after the ban on conventional battery cages in 2012.
After returning to Brazil, she reported that the housing systems allowed in Europe are furnished cages, multilevel sheds and free-range. Furnished cages offer 750 square centimeters per bird, together with perches, nest box, scratching area and claw shorteners as well as feed and water.
“In Europe, the use of battery cages is no longer allowed and beak trimming by the hot-blade method is prohibited in most countries,” Buss said.
In the barn systems, hens are housed on multiple levels without cages, allowing the birds go up and down to access the nests, perches, feeders and drinkers.
“The system is approaching free-range, in which birds are raised in sheds with access to the outdoors to encourage the expression of natural behavior such as dust-bathing and foraging,” she added.
The CTBEA is seeking to explore these alternative housing systems further in Brazil.

Brazil poultry, pig farmers face record production costs

Average production costs for both chicken meat and pork in Brazil for the month of September broke previous records with each exceeding an index of 190, according to figures published by CIAS, the Central Intelligence Poultry and Swine agency. The basal index of 100 points was established in January 2005 for pigs and in January 2010 for poultry.
CIAS is part of the Empresa Brasileira de Pesquisa Agropecuária or the Brazilian Agricultural Research Corporation (Embrapa).
The broiler index (ICPFrango) reached almost 192.0 points in September, an increase of 7.1 percent from the previous month and 9.6 percent for the year so far. Over the last 12 months, the costs have shown variation of 21.0 percent.
The index peaked even higher last month for pigs (ICPSuíno) at 195.0 points. That is 4.4 percent higher than in August and 11.2 percent above the start of 2015.
The report does not speculate on the causes of these increased costs but the Brazilian real lost around one-third of its value against the U.S. dollar over the first nine months of this year, according to figures presented by Hamish Smith of Capital Economic at the Grain Market Outlook Conference 2015 held in London, U.K. last week.

Brazilian pork exports

Brazilian pig meat exports were 52,571 tons in September, 19.2 percent more than in the same month of 2014, according to the Brazilian Animal Protein Association (ABPA). This brought revenues to the value of US$121.6 million, which is 23 percent less than September 2014. For the year to date, the exported volume is up by 6.2 percent to 393,400 tons, representing a fall in value of 17.5 percent at US$948.2 million. Russia remains the leading destination of Brazilian pig meat exports, accounting for 48 percent of the total volume exported during September 2015.

Brazilian broiler exports

For chicken meat, the principal importers from Brazil maintained positive levels in September shipments and avoided a sharp drop on the strike of agricultural federal tax, according to the ABPA. Brazilian chicken exports in September were down just 0.5 percent in volume from a year ago at 366,400 tons.Revenue was 18.9 percent lower at US$592 million. For the year so far, Brazilian chicken meat exports are 4.8 percent higher than last year at 3.186 million metric tons, with a value 9.1 percent lower at US$5.4 billion. Saudi Arabia is Brazil’s leading export market for chicken meat.
For 2015, exports are expected to be around 3 percent higher than the previous year, according to ABPA Poultry Vice President Ricardo Santin.

Brazil’s poultry production costs reach record high

The cost of poultry production in Brazil reached a record high in September, according to CIAS, a division of the Brazilian Agricultural Research Organization, Embrapa. For the first time since its creation, the ICPFrango index exceeded 190 points.
For the month of September the ICPFrango index registered 191.97 points, almost double the 2010 reference of 100, and continuing the upward trend seen throughout this year.
CIAS notes that the index for the month was 7.11 percent higher than for August, and has risen by 9.62 percent so far this year. Over the last 12 months, the ICPFrango index has increased by 21.02 percent.
Over the last year, almost all of the input costs used to calculate the index have risen. The highest costs have been recorded for feed, up by 16.7 percent, followed by day old chick prices, which are 2.36 percent higher than 12 months ago. Labor and health costs, however, have fallen over the period.
There may, however, be some relief in sight for Brazil’s poultry producers as, while feed, which accounted for almost 68 percent of costs, and equipment prices continued to rise in September, all other input costs used to compile the index were either stable or fell. Additionally, demand for poultry meat is expected to remain strong.
A similar situation has occurred in pig production, with the sector also recording record high production costs during September and over the last 12 months. However, the increase in input costs, while still in double, figures, has not been as high as for poultry producers.

ABPA: Brazil the best poultry producer in the world

ABPA Vice President of Poultry, Ricardo Santin, ensures that Brazil has the best poultry producers in the world.
 


Without any hesitation, Ricardo Santin, vice president of poultry of the Brazilian Animal Protein Association (ABPA), stated in a press conference: "We are the best poultry producers in the world.”


This has strong fundamentals: Brazil is the third largest chicken producer in the world, with 15 percent market share after China and the United States. But it is the first exporter of this animal protein in the world, generating 8,500 million of income from the exports of 4.1 million metric tons (2014 figure). In exports, Brazil has 38 percent of market share and given the current health circumstances in the world, it is likely it will remain as the largest exporter in the years ahead.


For example, this year they expect to increase exports from 4.1 million metric tons to 4.3 million metric tons. To do this, producers and government officials work together to achieve the goal. Just added to the list of countries importing Brazilian poultry products – now totaling 158 – was Malaysia and Myanmar. Saudi Arabia is the main destination for Brazilian poultry exports.


In addition to all of this impressive data, they have a strong genetic material basis developed in the country, availability of grains and water, good health status and technology. But exports are not everything. With 42.7 kg of chicken consumption per capita, 70 percent of production is for domestic consumption; the remaining 30 percent is for the international market.


The International Poultry and Swine Show (SIAVS) of Brazil, hosted by the ABPA, takes place in São Paulo, Brazil and is a very important event for this giant animal protein producer.

Animal health safe as Brazil trims budgets

The Brazilian government has reaffirmed its commitment to animal health. Like many other countries, Brazil is looking to cut public expenditure, however speaking at SIAV, the International Poultry and Pork Show, Agriculture Minister Katia Abreu said that the time was right to make a public announcement.
“If the ministry’s budget only ran to BRL1, that money would go to animal health,” she said.
Speaking to a group business, and political representatives, she continued that there was no point in having good logistics in the country if animal health could not be guaranteed, adding that expanding overseas sales of Brazilian poultry and meat were dependent on being granted health certificates.
Businesses need to work with the ministry in winning new markets, Abreu continued.
The commitment came days after the ministry announced that it had achieved savings of BRL69 million (US$21 million) in operational costs, and that all of these savings would be redirected to supporting animal health. It was also revealed that the ministry was considering the sale of certain assets belong to the Brazilian Agricultural Research Corporation, EMBRAPA, to raise money.

Brazilian chicken exports reach record high in June

Brazilian chicken meat exports registered a record volume in June. According to data from the Brazilian Association of Animal Protein (ABPA) — which includes whole chicken, chicken cuts, salted, processed and sausage products — 395,700 tons were shipped; a 30 percent increase than total exports in June of 2014.
With this enhanced performance, shipments generated revenues of R$2,100 billion reals, another record high and 52.3 percent higher compared to that obtained in June 2014. In dollars, the result was 9.3 percent higher, to reach a total of US$685 million.
According to ABPA CEO, Francisco Turra, the largest volume of exports by the sector so far was 381,000 tons in July 2014. "Moreover, for the first time, we break the barrier of R$2 billion reals in monthly performance. This is the result of the work we have promoted in our industry, along with government, opening new markets and expanding the capacity of shipments from other importers, such as China, along with maintaining the health status," he emphasizes.
The historical outcomes of June reversed the negative cumulative results that shipments had registered in the first five months of 2015. According to numbers by the ABPA, exports of chicken meat totaled 1.99 million tons in the first half of 2015, a performance 2 percent higher than last year.
In actual income of reals of the first half, there was an increase of 18 percent totaling R$10.22 billion. In the balance of foreign currency, a decrease of 9.4 percent was recorded, reaching US$3.420 billion.
“Several of our major importers accounted for this performance, such as Saudi Arabia, Japan, China, the UAE, Russia and Venezuela. In general terms, there was growth in virtually all markets, which confirms ABPA forecasts and points to a positive second half," said poultry vice president of the ABPA, Ricardo Santin.

Mato Grosso do Sul poultry exports triple in 10 years

Exports of poultry meat from the southern Brazilian state of Mato Grosso do Sul have risen by 329 percent over the last decade, reports Brazil’s Ministry of Agriculture. The increase in overseas sales has far outstripped that of the country as a whole, which has seen exports grow by 61.7 percent.
According to Nilton Pickler, president of the Mato Grosso do Sul agriculture and livestock federation, the state exported 161,000 tons of broiler meat and broiler products in 2014. The principal destinations were Saudi Arabia, Japan and China.
Mato Grosso do Sul is now Brazil’s seventh largest state in terms of poultry exports, and thought to be home to 24 million broilers – approximately 2 percent of the national flock. In terms of flock size, it ranks 11^th among Brazil’s 27 states. It has 1,141 poultry houses and 490 integrated broiler producers.
The state exports poultry to 75 countries in total but saw its overseas trade dented earlier this year as a result of the truck drivers’ strike. 

Giant poultry complex planned for south of Brazil

GMH do Brasil is to build a poultry processing plant in the Brazilian state of Parana with planned capacity to slaughter 400,000 birds daily.
The BRL200 million (US$63.64 million) investment will see construction of a slaughter and processing plant, a feed mill, incubators and breeding houses in the municipality of Pirai do Sul, the state government has announced.
The processing plant, due to come into operation in 2017 will have high levels of automation from slaughter through to deboning yet is still expected to result in the creation of 1,300 direct jobs and close to 5,000 indirect jobs across various support operations. As part of the integration, 300 poultry houses are to built, each with a capacity to house between 18,000 and 30,000 birds.
The new plant will primarily serve overseas markets, particularly Muslim consumers in the U.S. and European Union. Product will be marketed under the brand name Brazileh.
During its first year of operation, the plant is expected to slaughter 100,000 birds per day, rising to 200,000 in the second year and 400,000 in year three and beyond. Turnover is expected to be in the region of BRL20 million in year one, rising to BRL160 million in year three.
The Brazilian Chamber of Commerce and Industry, which has helped to support the project, notes that the development will work in harmony with the environment and that its operations will guarantee sustainability.
Parana is the largest Brazilian poultry producing and exporting state, slaughtering 5 million birds daily.

Brazil’s poultry meat exports remain weak in April

The volume of poultry meat exported by Brazil during April fell by 6.6 percent to 336,900 tons. Shipments were worth US$565.8 million, a contraction of 19.8 percent, however, in reals, the value of shipments was 9.3 percent higher, reports the Brazilian Association of Animal Protein (ABPA).
Demand from various export markets was lower during the month.
“In comparison with last year, there was a decrease in purchases by Angolan importers, as well as a stock adjustment by Hong Kong and in other markets,” said Ricardo Santin, ABPA vice president.
Between January and April this year, Brazilian poultry meat exports decreased by 2 percent while in value sales were down 11.8 percent to US$2.1 billion.
Franciso Turra, ABPA executive president added: “With exchange rate volatility, exporters are picking the best time to export, and this could have reduced April’s total. Additionally, the truck drivers’ strike also impacted business.”

Brazil’s first quarter poultry meat shipments flat

The volume of poultry meat exported by Brazil during the first quarter of 2015 contracted by 0.2 percent to stand at 928,700 metric tons, reports the Brazilian Association of Animal Protein (ABPA). By value, however, the sector witnessed a more serious decline. At US$1.592 billion, shipments over the first quarter were worth 8.4 percent less than in the first quarter of 2014.
As the quarter drew to a close, however, the industry’s performance witnessed an improvement. March’s export tonnage rose by 7 percent to 348,900, yet by value there was also a contraction to US$579.9 million, or 4.3 percent.
ABPA says that March witnessed a return to normal following a difficult February, and that its outlook for the year remained unchanged, particularly as new markets, including Pakistan and Asia, had opened up to Brazilian poultry meat.
Shipments to Asia rose by 19 percent in March. Those to China grew by 42 percent, while those to Hong Kong were 5 percent higher.
“If we add together the shipments to these two markets, China has become our second most important destination,” said ABPA vice president Ricardo Santin. 

Brazilian chicken exports keep a positive rate

Although impacted by recent strike roadblocks in Brazil’s southern region, Brazilian chicken exporters maintained a positive pace in February and reduced the cumulative negative performance in 2015. The primary countries accountable for this, according to figures obtained by the Brazilian Association of Animal Protein (ABPA) were South Africa, South Korea, Saudi Arabia, United Arab Emirates (UAE) and China.
These five markets together accumulated an increase of 26,400 metric tons in shipments during the second month of the year, to reach a total of 128,760 metric tons.
"Only to Saudi Arabia 58,200 tons were shipped in this month, 11 percent more compared to February 2014. This market is the largest importer of chicken meat from Brazil," said ABPA CEO Francisco Turra.
Among the other countries in the top 10 largest buyers of chicken meat from Brazil in February, China and the UAE imported similar volumes, 20,600 metric tons (up 28 percent) and 20,700 metric tons (up 20 percent), respectively.
"It is worth noting in this month, the performance of sales to South Korea with 11,800 metric tons, 198 percent higher than in the second month of last year," said ABPA Vice President of Poultry Ricardo Santin.
In total, considering whole chicken, cuts, salted and processed products, and sausages, 302,100 metric tons were exported in the month, which is 1.6 percent higher compared to February 2014. There was also monetary increase in income of 10.3 percent, with BRL1.458 billion. In this case, the income from foreign exchange, there was a fall of 6.7 percent, reaching US$518.1 million.
In the year-to-date accumulated amount, a decrease of 4.2 percent in shipped volumes during the first two months of 2015 was recorded, reaching 579,800 metric tons. The result generated foreign exchange earnings 10.6 percent lower than last year's total, with US$1.01 billion. However, the result in Reals was 2.4 percent higher, reaching BRL2.76 billion.
By product, cuts remained as the main product of the list, with 331,100 metric tons in the first two months, a 1.4 percent higher performance than the one recorded in the same period last year. In second place, whole products totaled 184,100 metric tons (down 10.2 percent). A total of 24,700 metric tons (down 2.1 percent) and 27,500 metric tons (down 16 percent) of processed and salted products were respectively exported. Finally, exports of sausages were 12,300 metric tons (down 21.4 percent).
When considering exports by region (excluding sausages), the Middle East is the main destination of shipments, with a total of 216,000 metric tons in the first two months of this year, a volume 0.3 percent lower than the same period of 2014.  Secondly, Asia accounted for 165,800 metric tons of shipments (down 5.8 percent). Japan, ranked third, imported 72,200 metric tons (down 9.4 percent). To the European Union (the fifth largest importer) 61,400 metric tons (down 11.5 percent) were shipped. To the countries of the Americas 35,900 metric tons (up 4.6 percent) were exported. Finally, imports from the non-EU European countries, were of 15,500 metric tons (up 21.8 percent) and Pacific, 355 metric tons (down 2.1 percent).

Brazil poultry industry targets value-added chicken on home market

With poultry meat consumption in Brazil now so high, the industry is looking at not only growing per capita poultry meat consumption, but increasingly at encouraging the consumption of value-added products.
Executive president of the Brazilian Association of Animal Protein (ABPA) Francisco Turra has said: “We have per capita consumption equivalent to that of the USA, and almost four times greater than that of the European Union. With such high levels of consumption, companies are looking to increase not only consumption per person, but they are primarily looking to direct the consumer to added-value products.”
The national agricultural society (SNA), says that poultry meat is the most consumed animal protein in Brazil, and consumed by 100 percent of households.
According to Turra, while consumption figures for last year are yet to be finalized, the country is among the 10 biggest consumers of poultry meat in the world. 2014’s production of poultry meat was beaten only by the amount produced in 2011. Brazilian exports of poultry meat, however, reached record levels.
Turra believes that the outlook for 2015 is positive for the industry.
“The recognition of new plants for exports to China, together with the ongoing shipments to Russia and other important markets, will contribute to the expected 3 percent growth in volumes this year,” he said.

Brazil’s poultry meat exports down strongly in January

Brazilian exports of poultry meat were down in January, both by volume and by value. The country exported 277,700 tons of poultry, a decrease of 9.8 percent. However, by value the contraction was more dramatic with sales 14.3 percent lower at US$494.4 million.
According to Francisco Turra, the executive president of the Brazilian Association of Animal Protein (ABPA), the fall in the price of petroleum could have been a factor in influencing the lack of credit in some importing countries.
“We have examples, such as Angola, that have reduced their imports of poultry meat from Brazil by almost 50 percent. The same scenario seems to have played out in Venezuela and Russia. In the case of the Russian market, the situation is being made worse by logistic problems in the country’s ports caused by the sever winter in Eastern Europe,” Turra explained.
The disappointing January figures show a continuation in the weaker sales reported by the association in late 2014.

Brazilian poultry meat production up 3.11 percent in 2014

Brazil’s poultry meat production reached almost 12.7 billion tons in 2014, an increase of 3.11 percent.
Despite the market slowdown as the year drew to a close, the sector ended in positive territory and the final figure was in line with industry expectations.
Consumption of poultry meat in the country rose by 2.2 percent to stand at 42.78 kg.
According to Francisco Turra, executive president the Brazilian Association of Animal Protein (ABPA): “There was a switch in the consumption of animal protein last year due to the high prices of beef, which  reached historically high levels. Higher consumption was also influenced by 2014’s strong influx of tourists, due to the World Cup.”
According to official statistics, approximately 1 million tourists visited Brazil last year.

Strong growth for Brazil’s fertile egg exporters

While 2014 may have been a disappointing year for exports of Brazilian table eggs, the country’s exporters or fertile eggs and genetic material saw their sales by volume last year increase by 47 percent, while by value they were 32.2 percent higher.
Brazil exported 12,600 tons of fertile eggs and genetic material in 2014, with a value of US$128.1 million, with growth in both value and volume terms driven by sales of fertile eggs.
Breeding stock exports rose by 5.5 percent in weight, while their value was 13 percent higher than in 2013.
“Brazil is consolidating its position as an exporter of genetic material thanks to heavy company investments and the excellent health status of the country’s flock. Avian influenza has never been registered in the country, which is a strong competitive advantage in today’s market,” explained executive president of the Brazilian Association of Animal Protein (ABPA).
The country’s main export destinations are other countries in the Americas, followed by the Middle East, Africa, Europe and Asia.

Brazil exported 4.1 million metric tons of chicken in 2014

Studies carried out by the Brazilian Association of Animal Protein (ABPA) show that Brazilian exports of chicken (whole chicken, cuts, further processed products, salted meat and sausages) totaled 4.1 million metric tons in the 12 months of last year, an outcome 3 percent higher than in 2013, with 3.98 million metric tons. The balance is a record, according to studies on figures of over 50 small, medium and large exporters of chicken from Brazil.
In foreign exchange earnings, there was a slight drop of 0.2 percent accumulated in 2014, which reached US$8.08 billion, against US$8.09 billion last year. However, when converted to Brazilian reals, the balance is quite positive: an increase of 9 percent, totaling R$19 billion, which is another record.
Chicken cuts were outstanding this past year, with 2.2 million metric tons, 7.3 percent higher than in 2013. Secondly, whole chicken shipments reached 1.43 million metric tons, a performance 3.7 percent lower than that achieved the previous year. Salted meats, with 188,700 metric tons (+5.8 percent) and processed products, with 157,700 metric tons (-1.9 percent) were exported. Finally, the total volume of sausages shipped reached 104,400 metric tons (+18.9 percent).
According to the CEO of ABPA, Francisco Turra, "The balance of 2014 consolidates recovery of exporters facing international crisis and paves the way for chicken exporters to conquer new markets in 2015."
By destination, not including sausages, the Middle East continues to be the largest importer of Brazilian chicken meat, with shipments of 1.37 million metric tons, 5.2 percent lower compared to the previous year. Following, Asia accounted for 1.18 million metric tons of shipments (+5.7 percent). Africa ranked third, importing 516,300 metric tons in the period (-1.7 percent). To the European Union (the fourth largest importer) 413,900 metric tons (-2.2 percent) were shipped. Ranking fifth, the Americas imported 344,300 metric tons (+22.4 percent). Imports from the non-EU European countries, were of 163,700 metric tons (+73.1 percent) and the Pacific of 2,200 MT (+25.1 percent).
Russia was one of the main market highlights of the year (especially in the second half), with an increase of 164.2 percent compared to last year, with 124,900 metric tons. There was also a significant growth in shipments to markets such as Venezuela (of 24.6 percent to 202,600 metric tons), Angola (20.8 percent with 102,900 metric tons) and the UAE (of 4.9 percent to 257,000 metric tons).
Furthermore, according to the Poultry vice-president of ABPA, Ricardo Santin, the Chinese market was consolidated as one of the largest trading partners of Brazilian chicken exporters. "The five authorized plants in 2014 were crucial to the balance of 227,500 tons for the year, with nearly 20 percent growth," he said.
China and Mexico on the radar of 2015
According to the ABPA projections, a growth of 3 percent by volume in Brazilian exports of chicken is expected this year. "In addition to returning to the levels of shipments to Russia, we have eight new plants for chicken meat exports to be authorized by China," says Turra.
There are also other markets on the radar of ABPA for expanding shipment levels next year. "Exports to Mexico showed an increasing trend in the levels of shipments. We still have the expectation of a market opening in Cambodia and Pakistan, which is one of the largest potential markets for Brazilian halal chicken," adds Ricardo Santin, poultry vice-president.

Rise in large and mid-size markets supports Brazil chicken sales

The recovery of income due to exchange rates and increased levels of shipments favored forecasts of Brazilian chicken meat exports in 2014. According to the Brazilian Association of Animal Protein (ABPA), in the month of August a slight reduction in volume of 0.4 percent was recorded, with 332,000 metric tons, but with a considerable increase in revenue of US$674.6 million, a figure 5.4 percent higher relative to the eighth month of 2013.
In the cumulative figure of the year, the pace of shipments of chicken meat was positive at 1.7 percent, with a total of 2,605 million metric tons. Meanwhile, the revenue performance declined by 4.6 percent, with US$5.163 billion between January and August 2014.
Chicken meat cuts were maintained as the main product from the list of exports between January and August. According to the ABPA, 1.423 million metric tons were shipped in the period, a 3.9 percent improvement when compared to the previous year. In whole chicken, the second product from the list, a drop of 2.2 percent with 954,000 metric tons shipped was registered. Salted meats, with 123,100 metric tons (up 5.7 percent) and processed products, with 104,300 metric tons (up 4.2 percent) complete the list.
Among the importing regions, the Middle East continues to be the largest destination for Brazilian chicken meat, with 911,400 metric tons shipped between January and August in 2014, which is a result 8.1 percent lower when compared to the same period of 2013. Asia, in the second position, showed an increase of 7.5 percent, with 777,700 metric tons. For Africa, established as the third-largest destination in volume, 328,800 metric tons (down 6.1 percent) were shipped. Ranking fourth, the European Union (EU) accounted for 276,300 metric tons of Brazilian chicken meat, a slightly higher figure compared to the previous year (up 0.4 percent). For the Americas, 245,300 metric tons were shipped, a 49.5 percent increase when compared to the previous year. Finally, European countries that are not part of the EU, 64,400 metric tons were exported, a 13.5 percent higher volume compared to the first eight months of 2013.
According to the CEO of the ABPA, Francisco Turra, the cumulative performance of the year was influenced by strong growth in large and medium size markets. "It was remarkable the performance of China, with a 20 percent increase in shipments after enabling five new plants, and Venezuela, which almost doubled purchases of Brazilian chicken meat. The medium-sized markets such as Vietnam, Angola and Mexico, were also highlighted in this context," he stressed.
To Russia, 38 thousand metric tons were shipped from January to August, 36.4 percent higher compared to shipments in the same period of 2013. However, such growth is not a direct result of authorizations for new plants by Russia in early August. "Compared with July and August, there was a 15.6 percent increase in exported volumes. These shipments would be even greater if the MAPA [Ministry of Agriculture] would certify several plants authorized to export, which is not yet the case," Turra said.
According to the poultry vice president of the ABPA, Ricardo Santin, the increase in demand of these medium and large markets should ensure the pace of the rise in 2014, despite the reductions seen in Middle Eastern markets. "If these increased levels of shipments are maintained, it is likely that for the second half our growth rate would be around 3 percent, according to what we are expecting," said Santin.
Saudi Arabia was the largest importer of poultry meat from Brazil between January and August 2014, with 433,600 metric tons (down 6 percent when compared to the same period last year). Seen as a "single market," the EU remained the second largest destination (276,300 metric tons, up 0.4 percent). Japan, ranked third, importing 269,400 metric tons (up 4.9 percent). In the fourth place, Hong Kong accounted for 211,200 metric tons of the general balance of the year (down 2.7 percent). In the fifth position, the United Arab Emirates totaled 170,200 metric tons shipped (down 1.1 percent).