February 28, 2009
Brazil feed sector to benefit from rising chicken prices
Recovering chicken prices may boost the growth of Brazil''s feed industry this year, the Brazilian Feed Industry Association said Friday (Feb 27).
The feed industry is now expected to resume its growth despite the drop in feed demand since October 2008 due to the world economic crisis and production cuts at domestic incubators.
The price of key inputs such as soymeal and corn has also dropped at the start of 2009, indicating improved returns, according to findings from the Rural Economy Centre (Cepea) of the Luiz de Queiroz Advanced Agricultural School.
Live chicken prices have increased 14.3 percent since the start of 2009, while prices of corn and soymeal fell 8.6 percent and 1.1 percent respectively.
Even so, chicken prices remain lower than at the same time last year.
The feed association on Thursday (Feb 26) reaffirmed the December forecast for 2009- a 5-percent growth to 63.83 million tonnes from 60.785 million tonnes in 2008.
The poultry industry consumes around 50 percent of the feed produced in Brazil. The association expects 4.1-percent growth in the sector''s consumption this year to 33.6 million tonnes from 32.26 million tonnes in 2008.
The hog sector is expected to increase consumption by 5 percent from last year to 16.4 million tonnes in 2009. However, the projection may fall not hit target because of the Russian market and low international prices.
The cattle sector is expected to increase consumption by 8.8 percent to 7.96 million tonnes.