Brazil’s poultry exports in 2021 show promising prospects

Last year was good for poultry exports in Brazil. The numbers don’t lie. The Brazilian Animal Protein Association (ABPA) reported that chicken exports reached a total of 4.6 million metric tons (fresh and processed), which is the highest export volume in a year. This is very good news – a 9% increase over 2020.

The good news is also that in terms of revenue, there was a 25.7% increase from 2021, with US$7.66 billion recorded in 2021. However, it is said that nationally, poultry enterprises have not fared well financially. Big companies had a bad third quarter, and we have yet to see how the fourth quarter went.

Brazil depends heavily on exports to Asia, mainly China, with 14.3%. Africa and Europe recorded an increase in their exports. The Americas receive less chicken imports (354,000 MT), compared to the rest of the world, but the number increased by 75.2% in 2021.

Chicken exports are no exception. Egg exports also performed well. Although, for obvious reasons, egg exports are not as important as chicken; there was still an 81.5% increase in 2021 compared to 2020, and revenue was also up 80%.

Ricardo Santin, CEO of ABPA, said the strong export performance “was fundamental to reduce the impact of the historic increase in corn and soybeans, the main raw materials for chicken production”. Good point.

Exporting to more than 140 countries ensures promising prospects, especially with poultry disease problems elsewhere. This second pandemic year saw a slow but steady recovery in the poultry industry. How good 2022 will be remains to be seen. Drought and drought in southern Brazil and Argentina are affecting crops and in some cases production forecasts for both countries have been revised downwards. The threatening weather forecast has prompted traders to add a ‘weather premium’ to soybeans and, to a lesser extent, corn futures, so we need to see what the impact will be.

In the meantime, congratulations to Brazilian poultry exporters.

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