São Paulo – Poultry production and exports are set to break records in 2015 and keep growing in 2016. According to projections released this Wednesday (9) by the Brazilian Animal Protein Association (ABPA), 13.1 million tons of chicken meat should be produced in the country this year, up 3.5% from 2014. Exports will amount to 4.2 million tons, up 4% from last year. Export revenues should amount to BRL 23.7 billion, up 25% from 2014 in Brazilian real and down 11% in US dollars.
While presenting this year’s industry results, ABPA’s CEO Francisco Turra ascribed the performance to entry into new markets, the international presence of Brazilian companies, animal sanitation control and the export-friendly exchange rates. He said performance can improve even further in 2016.
“We have a great chance to grow in animal protein; the world is looking at us. Brazil has platforms around the world. [Brazilian Agriculture] minister Kátia Abreu knows that and she is helping us out,” said Turra. Nevertheless, he noted that talks for a free-trade agreement between Europe and the United States and the Trans-Pacific Partnership (TPP), comprising 12 countries, could detract from the Brazilian industry’s performance. The TPP is made of the United States, Peru, Mexico, Brunei, Malaysia, Singapore, Australia, Chile, Japan, Canada, Vietnam and New Zealand.
ABPA’s vice president for Poultry, Ricardo Santin, said the growth of Brazilian exports in 2016 should be fueled primarily by entry into new markets and the expansion of manufacturing plants that could export to some countries. He said the main “drivers” of this growth should be Mexico and China, but also expects sales to increase to South Africa, Cuba, South Korea, Egypt, Iraq and Yemen. The latter three are Arab countries. Egypt is striving to start growing again after electing a new government in 2014. Presently, there are conflicts underway in Iraq and Yemen.
Santin said the Middle East will likely remain the top destination for Brazilian exports, region-wise, and that Saudi Arabia will continue to be the top importing country. This year, it will import some 750,000 tons of Brazilian poultry. The second-ranked country is China, whose imports will amount to 320,000 tons in 2015.
“Saudi Arabia will go on being our leading single importer, and the Middle East will remain our top buyer region for a long time. The falling oil prices could have a minor influence on the economic environment or on the agreement talks, but should not bear down on imports. This can be sensed in other markets, like Angola, where there’s less liquidity, and Venezuela,” he said.
ABPA said eggs production will reach 39.5 million tons, up 6% from 2014. Exports this year should reach 20.7 million units, up 70% from a year ago. Next year, the industry expects production to increase by up to 2% and exports to double.
*Translated by Gabriel Pomerancblum
