Brazilian chicken less competitive in international markets
The chief executive of the Brazilian Poultry Farming Association (Ubabef), Francisco Turra, says that due to high costs in Brazil and the unfavorable exchange rate, Brazilian chicken is losing competitiveness to Argentina, the United States and Thailand. "This drop in profitability is hurting the industry. Today we have a new company, BR Frango, which is targeting exports, but Doux Frangosul, which is one of the leading exporters, has closed down," he said.
Even faced by this situation, Ubabef expects volumes to increase by 2% to 3% in 2012 compared with 2011. As for the results of the Chinese mission that was in Brazil from the end of March until the beginning of this month, the Director of Markets at Ubabef, Ricardo Santin, says it was only a sampling visit (without any commitment to licensing slaughterhouses for export) and there has been no decision on increasing the number of units able to export poultry meat to the country.
"But the outlook is good. The Chinese left Brazil saying they will need more and more Brazilian meat. What is more, they have 47 Brazilian companies that want to be allowed to sell to them," he said. Today, Brazil has 25 units owned by 17 companies that have been licensed to export chicken to China.
Information provided by Agencia Estado