Brazil: Loss of consumer purchasing power influences the chicken market

Published 2022년 12월 6일

Tridge summary

The article explains the reasons behind the lack of response in chicken prices despite the increase in supply. It argues that the true cause is not increased production but a decrease in the consumer's purchasing power due to uncorrected price increases. Contrary to popular belief, the production of broiler chicks this year has been lower than in previous years, further disproving the idea of an excess supply.

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

Original content

Faced with the weak financial performance that chicken has been registering, there are those who conclude that prices do not react due to an excess of supply caused by recent increases in production. True, there is excess supply. But due not to the increase in production, but to the fact that the consumer has lost his former purchasing capacity. Mainly because prices rose without their earnings being corrected in the same proportion. To prove that there is no excess supply, consider the production of broiler chicks. This year, it has been lower than that observed, for example, two years ago, in the ...

Source: Agrolink