According to information obtained from Brazil, the country’s poultry breeders are concerned about the increase in the price of corn and soybean in this industry.
Market commentators believe that rising demand for corn and soybeans following the start of the second wave of COVID-19 outbreaks has pushed up prices in the sector.
Poultry feed typically accounts for more than 70% of production costs in this sector, and rising prices for these products have raised serious concerns for Brazilian poultry producers.
However, the outbreak of COVID-19 seems to have led to a significant increase in the cost of selling poultry products in this country.
Economists believe that while the export-oriented economy of Brazil’s poultry industry can make up for some of these shortcomings, the country’s producers certainly want to supply their basic production needs at a reasonable price.
However, assessments made by the Brazilian Center for Advanced Study of Applied Economics (Cepea) indicate that the purchasing power of breeders in this country has decreased, especially in the Broiler breeding sector.
The issue may have prompted the Ministry of Agriculture to announce yesterday that it has introduced a tax exemption for corn and soybean imports.