Record poultry exports projected for Brazilian industry

Bright prospects for Brazilian poultry exports are forecast by Fausto Ferraz, Cobb-Vantress business director for the country.
“Exports gained steam in the first quarter and are likely to continue growing,” he said. “The export record of 440,000 tonnes in July shows an even better prospect for the external market. We may finish 2015 at 5 million tonnes exported, which would result in less poultry meat for the domestic market.”
Ferraz points to one of Brazil's competitive advantages in the global market — particularly the health status of its birds, contrasting with avian influenza outbreaks in other regions of the world.
"Because of the excellent health status of our birds, the chances of gaining new markets remain favorable,” he stated.  “As a result of recent AI outbreaks many countries impose import bans to avoid the spread of the disease, giving preference to suppliers in regions without any disease outbreaks.”
Within Brazil the first quarter was marked by breeder placement similar to the same period of 2014, but with a slight increase in broiler chicks.
"We believe that the second quarter will remain equally stable. Beef, which is a natural competitor to chicken meat, does not show signs of any price decrease, and so chicken meat should continue to be the choice of the Brazilian consumer.”

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.”

Mexico renews import authorization of Brazilian chicken

Mexican authorities announced the authorization renewal — through March 2016 — of Brazilian poultry processing plants for exports to Mexico. The decision by the Mexican government was made without the need for any prior inspection visit to Brazil. The move is a result of the efforts the Ministry of Agriculture, Animal Industry and Supply (MAPA) has been doing to maintain shipments of poultry meat to the Mexican market.
"This is an achievement by the Ministry of Agriculture. The renewal of the authorization demonstrates confidence in our health protection system and reinforces the quality of our products," said the Minister of Agriculture, Katia Abreu.
Currently, there are five Brazilian poultry plants authorized to export to Mexico. The trade potential of raw chicken meat from Brazil to Mexico is US$315.7 million, the approximate equivalent of 244,000 tons.
In 2014, Mexico imported US$852 million (706,000 tons) of raw chicken globally. Imported from Brazil alone was a total of US$36 million (13,000 tons), which corresponds to a share of 4.2 percent.
In addition to efforts for the renovation of the authorization, MAPA has asked Mexico to send a mission to Brazil in order to enable new exporting poultry processing plants. MAPA is awaiting the response of the Mexican government.

Brazilian chicken exports decline

Studies by the Brazilian Association of Animal Protein (ABPA) show that Brazilian exports of chicken (these include whole chickens, cuts, salted and processed products, and sausages) registered a 7.1 percent contraction in volumes shipped during May, compared to the same period in 2014, with a total of 329,200 tons.


Despite the fall, the sector maintained a surplus in revenues in Brazilian reals of 12 percent, with a total of R$1.768 billion in the fifth month of the year. This was not the case with the dollar balance, which showed a contraction of 17.9 percent compared to the same period, reaching US$584.1 million.


“Although the change has favored the balance of sector shipments in reals, exporters are optimistic and expect greater exchange rate stability for better sales planning,” emphasizes the CEO of ABPA, Francisco Turra.


In the general balance of the year, shipments in volumes in the first five months of 2015 recorded a drop of 3.1 percent with 1.594 million tons. In Brazilian reals, the balance was positive in 11.1 percent with R$8.068 billion. In foreign exchange revenues, the result was 13.11 percent lower with US$2.741 billion.


"The slight fall in the accumulative amount from January to May did not hurt the sector's profitability. However, the expectation in performance in the second half of the year, which is traditionally higher than in the first six months of the year, should recover the accumulated losses,” says Ricardo Santin, Vice President of Poultry of the ABPA. 

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 poultry exports to Russia continue to rise strongly

Brazil’s exports of poultry meat to Russia are continuing to grow rapidly. According to figures released by the Brazilian Animal Protein Association (ABPA), the volume of poultry meat shipped to Russia in October – 33,610 tons - was more than 60 percent higher than that shipped in September. In comparison with the volume shipped in October 2013, exports were more than 455 percent higher.
By value, October’s poultry meat exports stood at US$75.1 million, 46.3 percent up on the previous month and 111 percent higher than the figure recorded for 2013.
“Russia has become one the best opportunities this year for poultry meat exporters and our prediction is that a similar performance to October’s will be repeated in November,” said Francisco Turra, ABPA executive president.
He continued that Venezuela had also proved to be a significant market for Brazilian poultry meat exports in October, with sales rising to 20,260 thousand tons, up from 1,870 tons in September.
Brazil’s global poultry meat exports were 1.9 percent higher by value in October this when compared with October 2013, however by value they were 9 percent higher and worth US$742.38 million.

Poultry meat key in Brazilian poultry meat exports

Figures released by Brazil’s Ministry of Agriculture show that the country exported agricultural products worth US$7.95 billion in October.
The meat sector was the strongest performer during the month with overseas sales worth US$1.75 billion, an increase of 8.4 percent in comparison with October 2013.
Poultry meat generated the most revenue, with exports in comparison to October 2013 rising by 9 percent to stand at US$742 million. The second most exported meat was beef, with sales of US$685 million, followed by pork, worth US$198 million.
The second most important agricultural export sector in October was sugar/alcohol, with a value of US$1.13 billion, while the main export markets for Brazilian agricultural produce were Asia, with sales reaching US$2.42 billion, followed by Europe, worth US$1.99 billion.
Year to date export figures, however, show the meat sector being pushed into second place by exports of soya. 

Brazilian chicken meat exports set record revenue in July

The export growth in several large markets helped Brazilian chicken meat achieve record revenues in July. According to the Brazilian Animal Protein Association (ABPA), Brazilian exports of chicken (whole chicken, cuts, salted and processed products) totaled 371,100 metric tons in July, a result 9.4 percent higher when compared to the same period of 2013.
In addition to the significant increase in volume, revenues went up 14 percent as compared to the same quarter, to reach US$771.8 million, a record high.
From January through July, industry shipments reached 2.274 billion metric tons, a result 2 percent higher compared to the same period of 2013. In income, there was a reduction of 5.9 percent in comparison with the first seven months of 2013, with US$4.489 billion.
According to the data of ABPA, comparing the performance in the months of July 2014 and 2013, shipments to Saudi Arabia rose 2.47 percent;to Japan, 40.37 percent; China, 36.8 percent; and the European Union, 16.24 percent.
As explained by ABPA Poultry Vice President Ricardo Santin, "Shipments delayed by the rains of June [in the state of Santa Catarina] accumulated and defined a higher level of exports than initially planned for July. This, coupled with the recovery of average prices relative to the start of the year, allowed the industry to achieve record revenues in July. "
According to ABPA, 1.235 billion tons of poultry cuts were shipped between January and July, a 4.3 percent increase when compared to 2013. Exports of whole chicken during the first seven months of 2014, Brazil’s second-most exported product, totaled 841,500 metric tons, a year-over-year decline of 1.9 percent. Salted meat exports amounted to 104,200 metric tons, a 3.8 percent increase, and processed products, with 92,700 metric tons, represented a 6.8 percent increase.
Top markets for Brazilian chicken
The Middle East remains the largest destination of chicken meat from Brazil with 799,900 metric tons shipped, a decline of 8.1 percent compared to the same period of 2013. Asia ranks second, importing 673,500 metric tons, up 7.4 percent. The third largest destination, Africa, accounted for 288,400 metric tons, a decline of 3.7 percent. To the European Union, the fourth largest importer, 240,500 metric tons were shipped, an increase of 0.8 percent. With the largest growth increase, the Americas imported 216,100 metric tons of Brazilian poultry in the period, up 49 percent. Imports from the non-EU European countries, with 53,800 metric tons, represented a 12.9 percent increase, and Pacific countries, at 1,100 metric tons, represented an 18.4 percent increase.
Saudi Arabia was the largest market for Brazilian chicken meat between January and July, with 381,000 metric tons, down 5.6 percent when compared to 2013. Ranking second was the European Union, with 240,500 metric tons, up 0.8 percent. In the third ranking, Japan imported 233,200 metric tons, a 3.2 percent increase. To Hong Kong (the fourth largest market) 183,700 metric tons were shipped, a decline of 1.2 percent. The United Arab Emirates ranked fifth, importing 147,900 metric tons between January and July.

Brazil to start chicken meat exports to Pakistan

Pakistan has approved the import of chicken meat from Brazil - currently the largest exporter of halal chicken in the world.
Commenting on the authorization, Francisco Turra, president of the Brazilian Poultry Association, Ubabef, said: "Over the decades we have gained a lot of experience in halal production. Brazil's leadership in this segment of the international market attests to our competence and the quality of our products developed for the Islamic public. Our credibility was fundamental to the success of the negotiations to open up this market."
He continued that while Pakistan produces 700,000 metric tons of poultry meat each year, per capita consumption remains relatively low at 4.5 kilograms. Because of this, Brazil would be working with local companies to raise consumption and exchange information.
"The opening of the Pakistani market to Brazilian poultry meat was one of our main aims for 2014. It is an important market with a lot of potential for growth. Our strategy will focus on complementing local demand, bringing know how and technology to local producers," Turra added.

Brazil exporter to expand poultry shipments to Middle East

Brazil export-import company BrazArtis Assessoria em Comercio Exterior has made plans to expand chicken exports to the Middle East in an effort to grow Brazil's poultry presence in the region.
Brazil's exports already span Saudi Arabia, the United Arab Emirates, Qatar, Jordan, Bahrain, Kuwait, Lebanon, Syria and Oman. "The Middle East region is a focal exportation and trading hub for Brazil," said a BrazArtis spokesperson.
Total Brazilian poultry production reached 13 million tons in 2011, a 6.9% increase from 2010. Exports are expected to total 3.937 million tons, over 30% of the total production, according to Brazilian Poultry Union, UBABEF.

South Africa poultry producers may bring anti-dumping case against Brazil

The South African Poultry Association is looking into bringing an anti-dumping case against Brazilian chicken imports, saying that some products are selling for a third of what they're selling for in their country of origin.
In particular, Astral Foods Ltd. is concerned that unfair imports could hurt company profits. According to CEO Chris Schutte, 2010 average broiler prices were the lowest in four years even though per capita consumption rose. Gains in the value of the South African rand have also made imports more competitive. “The strong rand is playing havoc,” said Schutte. "The currency has gained about 38% in the past two years to 7.29 against the dollar."

Brazilian chicken exports to Egypt up 235%

Brazil's chicken exports to Egypt grew 235% in January 2011 compared to January 2010 numbers, rising from 2,429 metric tons to 8,156 metric tons.
The growth was even greater in value, from $3.761 million last year to $15.083 million this year — growth of 301%. Sales are expected to continue their upward trend, according to Brazilian Poultry Union President Francisco Turra. "The chance of growth is great as the demand for Brazilian chicken is very high," he said.
In 2010, Egypt was already a main destination for Brazilian chicken exports. Egypt increased its imports during a bird flu scare in the country and numbers have remained high since then. "Egypt is a market that shows great confidence in Brazilian exporters," said Turra. "The entire Middle East is still buying much."

US poultry must rise to Brazilian competition, says panel

NCC panel: Brazil has unique advantages.

Brazil’s poultry industry will continue to challenge U.S. producers in markets at home and abroad, and the U.S. poultry industry needs to rise to the competitive challenge, said a panel of executives at the National Chicken Council (NCC) annual meeting.
Top executives of the three largest U.S. chicken companies said Brazil’s proximity to huge grain supplies will continue to drive that industry’s reach into global markets, including the U.S. market. The U.S. industry, they said, needs to learn how to compete with that challenge and must work politically to fend off a growing regulatory burden that threatens its competitiveness.

Tyson CEO warns about U.S. ‘regulatory overreach’ 
Tyson Foods CEO Donnie Smith said, “The reason the Brazilians and others are interested in the U.S. market is that this is a great market and still the world’s leading economy. It’s a great place to do business, and we don’t need to lose our competitiveness as an industry.”
Smith expressed concern over U.S. competitiveness in light of “regulatory overreach” which he said is “driving costs into the U.S. industry without providing a requisite value back for consumers.” If allowed to continue, he said, this will lead to the U.S. industry being less competitive globally.

Brazil positioned for continued success, says Perdue president 
U.S. producers have the home-field advantage of producing for the world’s leading poultry market, but the Brazilians enjoy cost advantages that will be difficult for the U.S. to match.
Mike Roberts, president, food products business for Perdue Farms, said, “Brazil is going to be a factor globally. They can produce five crops of grain in two years, while U.S. farmers can at best produce three, most of the time two. Brazil will continue to be a factor, and we will have to learn to how to compete with them.”

U.S. can learn from Brazilians, says Jackson 
“The reality is that Brazil is in a unique position relative to the world’s meat supply, both in chicken and beef. There will continue to be Brazilian companies with interest in [producing and selling] chicken outside of Brazil,” said Don Jackson, CEO, Pilgrim’s Pride.
Jackson, whose company was acquired in 2009 by Brazilian meat and poultry producer JBS, S.A., said Brazilian companies bring a focus on costs and efficiency from which U.S. companies can learn.
“The Brazilian approach to this business has been very successful and brings a level of efficiency that in some respects we have ignored in the U.S. industry over the last several years. We’ve been successful, in some respects, in spite of ourselves. I think that the Brazilian approach to the meat business will allow us to reexamine how we approach the business,” he said.

Listen online 
Hear a podcast of the comments by Smith, Roberts and Jackson in a question-and-answer session at the National Chicken Council (NCC) annual meeting in Washington, D.C. The podcast is accessible online.  
Also participating were Jerry Lane, president, Claxton Poultry; and the panel moderator, Bill Lovette, president and COO, Case Foods.
Video interviews with panelists Don Jackson, Mike Roberts and Bill Lovette can also be viewed online.