Brazil: Chicken farming crisis deepens in last two months
Frozen Whole Chicken
Brazil
Published Dec 2, 2022
Tridge summary
The market design for Brazilian chicken farming in 2022 was pointing to a year of tight margins, but there were profits, which albeit small, allowed for accounts to close in positive territory, unlike the situation of pig farming. For the last quarter of the year, this picture has changed substantially, with symptoms of oversupply in […]
Original content
The market design for Brazilian chicken farming in 2022 was pointing to a year of tight margins, but there were profits, which albeit small, allowed for accounts to close in positive territory, unlike the situation of pig farming. For the last quarter of the year, this picture has changed substantially, with symptoms of oversupply in the domestic market and a consequent decline in slaughtered and live chicken prices. The margins, until then positive, have turned negative, with reports of losses, mainly in the South Region. The main factors that lead to this scenario are listed below: Resumption of Ukrainian exports. Ukraine is going through a delicate moment. The exits to the Black Sea are under Russian control, and exports have become more difficult, but there is a great Ukrainian advantage over other exporters, such as the ability to sell its beef production chicken via road transport. Ukrainian chicken is very competitive in the European market, mainly in the Netherlands. The ...
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