W12 Chicken Update: Brazilian Chicken Exports Navigate Regional Challenges and Chinese Market Opportunities

Published 2024년 3월 28일

In W12 in the chicken landscape, Brazil's chicken meat exports display contrasting trends across different regions in early 2024, with growth in major markets like Saudi Arabia and the UAE but declining shipments near the Red Sea, particularly to Yemen and Egypt. While exports to established destinations show a modest decline compared to Q4-23, they register significant YoY increases. However, exports to Egypt and Yemen experienced substantial drops, raising concerns in the Brazilian poultry sector. Concurrently, China’s removal of anti-dumping tariffs presents an optimistic outlook for Brazilian exporters, with increased market access and the approval of new processing plants contributing to robust export volumes to China, despite a slight decrease in export revenue.

Growth in Major Markets, Decline Near Red Sea in Brazilian Chicken Exports

Brazil's chicken meat exports to the Middle East exhibit a mixed performance in the first two months of 2024. Shipments to established destinations like Saudi Arabia and the United Arab Emirates (UAE) witnessed a modest decline of 1.3% compared to Q4-23. However, these exports registered a significant increase of 18% year-on-year (YoY). These two countries combined received 145.9 thousand metric tons (mt) of chicken meat, representing 18.2% of Brazil's total exports to the region during the first two months of 2024.

Conversely, exports to Yemen and Egypt, located near the Red Sea, witnessed a substantial decrease. Shipments to Egypt dropped by 28.7% compared to Q4-23 and 57.7% YoY, totaling 13.1 thousand mt. Similarly, exports to Yemen declined by 21.4% YoY, reaching 4.5 thousand mt. This contrasting performance raises concerns within the Brazilian poultry sector, particularly considering Brazil's position as the leading global supplier of Halal chicken meat to the Middle East. Potential factors like regional tensions or logistical challenges warrant further exploration.

Brazil's Poultry Exports to China Get a Boost with Lifting of Tariffs

The poultry industry in Brazil is set to benefit from a recent positive development in its trade relationship with China. China’s removal of anti-dumping tariffs on Brazilian chicken meat presents a major opportunity for Brazilian exporters, eliminating a barrier and allowing them to compete on a more level playing field with other suppliers in the Chinese market. China's approval of 12 new Brazilian poultry processing plants for export signifies growing confidence in Brazilian poultry quality standards. This expansion allows more Brazilian companies to enter the Chinese market for the first time.

Despite a slight decrease in export revenue compared to the same period in 2023, Brazil's chicken meat exports to China remain robust. Feb-24 marked the highest export volume (397.7 thousand mt) ever recorded for the month, exceeding the previous year's figures by 4.7% YoY. The first two months of 2024 also saw a marginal increase (0.3% YoY) in total export volume.