Brazil: Strengthened margins in poultry, firm chicken and falling costs

Published Mar 5, 2024

Tridge summary

Brazil's poultry farming sector is currently thriving due to stable chicken prices and decreasing costs of corn and soybean meal. Despite a slight dip in chicken production and exports, the sector's performance remains robust, largely due to record exports from the previous year. The current market conditions are ideal for accumulating corn stocks due to favorable prices. However, the sector must manage the price risks associated with feed inputs and avoid overexpansion in chick housing to maintain healthy profit margins. Brazil remains a key supplier of chicken meat to China, providing 65% of its total imports in 2023.

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

Original content

The recent situation in Brazilian poultry farming reveals a favorable scenario, with stable wholesale chicken prices, combined with the drop in corn and soybean meal costs. This rare combination, especially notable at the beginning of this year, has strengthened the sector's margins, demonstrating resilience even in the face of challenges such as crop failure. Unlike previous years, where domestic chicken meat prices generally weakened at the beginning of the year, we observed a different trend in 2024. In the state of São Paulo, frozen whole chicken showed a 0.7% increase in February in compared to the previous month, reaching R$ 7.37/kg. This stability is in line with levels recorded in December last year. Preliminary data from the Brazilian Institute of Geography and Statistics (IBGE) for the fourth quarter of 2023 indicate that the pace of chicken production remains under control. Slaughters registered a drop of 2.3%, while meat production was 4.1% lower compared to the same ...

Source: Portal Do Agronegocio