Chicken farming shows firm year-end prices across Brazil

Chicken farming managed to achieve a balance between the forces of supply and demand during the second half of the year. The surplus situation that was noteworthy between the months of June and July has not been repeated, allowing for good price recovery throughout the production chain, especially for wholesale frozen chicken.

With the consistent rise in prices, the sector found space to recover its operating margins, resuming some profitability. Animal nutrition costs are lower compared to the same period last year, allowing for a scenario of greater tranquility for the sector for much of this semester.

Exports are still a key factor to be considered, with Brazil on the verge of setting new record shipments. The expectation is that exports will be able to reach the 5-mln-ton mark, accounting for more than 1/3 of the global trade chain of this protein.

Avian influenza is still a relevant point of attention. Brazil continues to carry out extensive testing and surveillance to prevent the outbreak of the disease in its commercial flock. To date, Brazil has 137 foci of the disease, out of which 134 are in wild animals and only 3 in backyard birds. The country tends to increase precautions from November, the period in which the migration of birds starts from the Northern to the Southern hemisphere, a more delicate point.

As for domestic consumption, chicken meat has lost competitiveness with the recent hike in prices. However, this is still the preferred protein for the lower-income portion of the population, who receive between one and two minimum salaries. Even with the rise in wholesale and retail chicken prices, this protein remains much more affordable compared to its competitors.

Tags: supply, demand, exports, Brazil, prices, Production, chicken, shipments, consumption