Poultry industry booming in Brazil

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Solid growth by South American poultry producers continued undaunted in spite of the recent global financial downturn.

Successes in Brazil, Argentina and Peru are among the factors that currently place the South American contribution to the world production of poultry meat and eggs at nearly 20 percent as of 2009. The figure was just approximately 14 percent in 2000. The gains are being attributed to investments in technological innovation and competitive pricing in light of higher costs for raw
materials, new regulations and energy issues.

Brazil's poultry industry, for example, maintained production growth in 2009 with a record 11 million metric tons of broiler meat and steady internal per capita consumption of 86 pounds. However, the industry also completed a major restructuring in 2009 while managing a decline in the Real versus the U.S. dollar and a decline in orders from Russia, Japan and Venezuela. The industry is also expected to feel pressure from the merger of Perdigao and Sadia (Brasil Foods), the growth of Tyson Brasil and Marfrig's anticipated jump into poultry, WorldPoultry.net said.

Producers in Argentina saw exports fall by 30 percent at the end of 2008, but rebounded to ship 265,000 metric tons of poultry meat and post a 2 percent gain in volume. Production exceeded goals set in 2002, growing by 6.2 percent to 1.7 million metric tons in 2009. Per capita poultry consumption grew to 75 pounds, thanks in part to the lower price of poultry compared with beef. The Centre of Poultry Processing Business Argentina (CEPA) has set a goal of increasing per capita consumption to 86 pounds in 2013 and 97 pounds by 2017. CEPA expects to borrow $100 million each year to build breeder houses, feed mills, hatcheries and other related facilities in order to achieve these benchmarks.

For Peruvian producers, strong domestic demand helped the industry post a 7 percent growth rate in 2009, despite the economic slowdown. Annual production is expected to grow by 59 percent to 1.2 million metric tons by 2014. Unlike its counterparts in Latin America, Peru exports less than 1 percent of the total poultry production and relies instead on exporting genetic products (hatching eggs, day-old chicks and turkey chicks) to Colombia, Bolivia, Ecuador and Venezuela. According to the Peruvian Poultry Association, national per capita consumption is 62 pounds.

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