Brazil: Chicken prospects in 2023 in Rabobank's view

Demand remains strong and supply limited, but the context is changing. An economic slowdown could affect market conditions and the persistence of high inflation will put pressure on consumer purchasing power. This usually translates into stronger demand for cheaper chicken, eggs and cuts and – in markets where more expensive options such as organic chickens are already available – into stronger demand for conventional chicken. While a growing number of countries are at risk of oversupply, markets globally are expected to remain firm in 2023 and demand for poultry will benefit from the drop in trade. However, in many countries, increased demand will be constrained by lower supply, leading to continued high prices. While chicken is the top-ranked protein in terms of affordability, the bigger question is what price consumers are willing to pay. This can lead to a profound reduction in demand, especially among low-income consumers. This is what is happening globally, but especially in ...