Date :23 October 2020

Brazilian chicken meat producers at a crossroads: reduced production or reduced prices!

Rising feed prices have reduced the profit margins of chicken meat producers in Brazil.

Some Brazilian experts have stated in recent days that to create a reasonable balance and a favorable profit margin for producers in the poultry sector, the country prices should be revised and increased by 15 to 20 percent.

Some experts believe that the only logical way to balance this sector is to reduce production. This issue does not seem to be on the agenda of the producers of Brazil because ABPA had recently talked about a 5% increase in the production of chicken meat in this country.

However, it seems that there are restrictions to increase the price and its implementation will be difficult.

The Brazilian Animal Protein Association believes that the fourth quarter is very important in this country because the demand for its products in Brazil has increased and can play an important role in balancing prices in this sector.

Given the above, it seems that chicken meat producers in Brazil are taking every opportunity to increase their share in the market and under the current circumstances we have to wait and see what measures to take this time to control the prices of this product in their domestic market.

Finally, it should not be forgotten that despite the increase in the price of chicken meat in Brazil, this product still has a greater advantage compared to other protein products.

 

Read more:

Chicken meat prices have fallen 36 percent in international markets since 2013

Brazil will continue to export chicken meat

Declining Brazilian revenue from chicken meat exports

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