W19: Chicken Update

In W19 in the chicken landscape, ABPA indicates that Brazilian chicken meat exports (fresh and processed) in April 2023 amounted to 435.1K MT, valued at USD 840.3M, up 4% YoY in volume and 2.3% YoY in value. In the first four months of 2023, Brazilian chicken meat exports (fresh and processed) reached 1.749MMT worth USD 3.413B, up 12.1% in volume and 18.9% in value compared to the same period in 2022. In the first four-month period, Brazilian chicken meat shipments were mainly destined for China (+33.3%), Japan (+6.2%), South Africa (+12%), Saudi Arabia (+36.9%), the EU (+11%), the Philippines (+8.3%), and Mexico (+18.9%). ABPA states that April’s export volume was in line with the monthly average registered in the first three months of 2023, above 430K MT and expects equivalent numbers in the coming months. ABPA also projects 2023 Brazilian chicken meat volume to surpass 5MMT for the first time, destined for more than 150 countries. ICP reports that in 2022, Brazilian chicken meat production totaled more than 14.5MMT, with 66.8% destined for the domestic market and 33.2% headed for international markets. This indicates that chicken meat has gained more prominence on Brazilian tables in recent years, with the 2022 average consumption standing at 45.2kg per person, a significant increase compared with the consumption recorded in 1986, when each Brazilian consumed, on average, 10kg of chicken per year.

According to APINCO, Brazilian broiler chick production in March 2023 totaled just over 574M heads, up 8% MoM and 3.24% YoY. However, the daily average saw a decrease of 2.76%, as March had three extra working days compared to February. In Q1 2023, Brazilian broiler chick production approached 1.7B heads, an increase of 4.12% compared to Q1 2022, but 1% below Q1 2021 when the production of broiler chicks reached 1.716B heads. According to SECEX data, Brazilian chicken exports, including whole chicken, cuts, salted chicken meat, and industrialized products in April 2023 did not reach 400MMT but amounted to 399.838MMT, valued at USD 778M. This indicates that the Brazilian chicken export volume decreased by around 1.5% YoY. The extremely low numbers of the Alice System were unexpected, since, according to the initial information, released on the first four working days of April, exports of the product in natura alone totaled 408.3K MT, valued at USD 156.98M.

In the Czech Republic, the State Veterinary Administration (SVS) revealed that Ukrainian and Brazilian poultry meat tested positive for Salmonella, involving more than 5K kg of Brazilian frozen chicken and almost 3.5K kg of Ukrainian frozen chicken. TUIK reports that Turkish chicken meat production in March 2023 totaled 199.95K MT, up 13.5% MoM but down 1.5% YoY. Meanwhile, Turkish chicken slaughter in March reached 109.048M units, a decrease of 6.5% YoY. Moroccan chicken prices continued with their upward trend since the month of Ramadan to reach a record level of USD 2.97/kg. This is linked to the high cost of compound feed, which doubled over the past year, in addition to the increased demand for chicken due to the high cost of red meat. Moroccan chicken prices are anticipated to increase further during summer, which coincides with the season of weddings and parties. Lastly, since the beginning of 2023, the Iranian government distributed more than 5K MT of frozen chicken, with the aim of regulating the market, controlling chicken prices, and meeting the needs of the people.