USDA projects 3% increase in Brazilian chicken production and exports in 2022

RIO DE JANEIRO, BRAZIL – Brazil’s chicken meat production is expected to reach 14.72 million tons in 2022, up 3% year-on-year, driven by strong foreign demand and increased domestic consumption, estimated the representative of the United States Department of Agriculture (USDA) in Brasilia, according to a report published Thursday (2).

The message of the U.S. agency in Brazil highlighted that both exports and domestic consumption, which have broken records this year, also tend to increase 3% next year, to 4.17 million tons and 10.54 million tons, respectively.

“In 2021, exports increased 5%. Overall, shipments should remain just above a quarter of total production, with China as the main destination for Brazilian chicken meat,” said USDA representative Camila Aquino.

She added that the African swine fever outbreaks in China since 2018 have afforded Brazil’s meats a greater opportunity in the foreign market, in a trend also supported by the devaluation of the Brazilian real against the dollar.

She also pointed out the rapid increase in the prices of inputs used in chicken production, which increased 40% in the past 12 months and have pressured the protein’s prices.

Corn, used as animal feed, is among the main price hikes. “The high prices of animal feed have squeezed the sector’s profitability… Corn, for instance, represents about 70% of animal feed. The corn crop shortfall has resulted in scarce supplies and high prices in the domestic market,” Aquino said.

The USDA also mentioned the economic crisis in the country, which led the population to increase its consumption of cheaper meats, such as chicken, another factor that boosted the protein’s prices.

Brazil is the world’s second largest chicken meat producer, behind only the United States, but holds the position of largest global exporter of the protein, and its main customers are China, Saudi Arabia and Japan.

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