Brazil's chicken crisis increases in early 2023

Published 2023년 1월 13일

Tridge summary

The Brazilian chicken farming sector is currently facing a downturn due to overproduction and decreased international demand. The sector expanded its housing for breeder chicks by 6.3% in November 2022, contributing to an oversupply in the market and leading to a drop in prices for both slaughtered and live chicken. High corn prices, a key input for animal feeding, further increase the sector's costs. The expansion of beef production is expected to further cut into chicken's market share. Despite these challenges, the sector's quick production cycle could allow for a speedy adjustment if housing numbers are corrected. For 2023, high costs and tenuous demand remain significant hurdles.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

As discussed in our last newsletter of 2022, the outlook for chicken farming is worrying, prices do not find room for support. The downward movement intensified in the period, quite affecting the prices of slaughtered and live chicken. The crass error was the expansion of the housing of breeder chicks in the last four months, at a time of retraction in the volume exported. In addition, the deterioration of the average prices paid per ton of chicken in the international market was also evident. According to data from APINCO, housing in October hit approximately 593.96 mln head, up 0.73% from the same period in 2022. In November, the indication is for the housing of 603.28 mln head, rising nearly 6.3% compared to the same period last year. These numbers give a clear idea of the expansion of production, justifying the oversupply in the market and the consequent loss of margin. From January to November, the country housed around 6.24 bln chicks, down 1.3% from the same period last ...

Source: UkrAgroConsult