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Brazil: Excessive supply of chicken in April leads to a drop in prices

Published May 7, 2024

Tridge summary

In April, the Brazilian chicken market saw a significant decrease in prices due to an oversupply caused by a rise in broiler chick housing during the first two months of the year. Despite being one of the world's largest chicken meat exporters, the industry is still facing challenged by low prices. The average price per ton of poultry meat and its edible offal for exports in April dropped by 4.6% compared to the same month last year. Additionally, domestically, prices for frozen and chilled chicken saw substantial drops.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Brazilian chicken market experienced a significant decline in prices during the month of April, due to excess supply. Analyst Fernando Iglesias, from Safras & Mercado, attributed the drop in prices to the increase in broiler chick housing during the first two months, a factor that contributed to the greater supply on the market. "Oversupply is a clear symptom of an increase in chicken production," Iglesias said. He highlighted that, although Brazil's exports remain significant, with the country being one of the largest global suppliers of chicken meat, prices still remain depressed. In addition to excess supply, the poultry sector is aware of the threat of avian influenza. Brazil has been closely monitoring the evolution of the disease to avoid impacts on production. Another point that deserves attention is the costs of animal nutrition, which, according to Iglesias, remain under control thanks to the stability in the prices of corn and soybean meal. In domestic prices, prices ...
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