South America Calling

Brazilian chicken exports have surged in 2015, prompting the local animal protein association, ABPA, to raise its shipment growth forecast from 2%-3% to 5%.

Brazil is managing to open new markets, robbing market share from the U.S. following an avian flu episode there, said the association.

The main gains were seen in the Chinese market, although Brazil also expanded market share in Saudi Arabia, UAE, Russia and South Africa.

In addition, Brazil has also managed to open three new markets, Myanmar, Pakistan and Malaysia.

Brazil is the world's leading chicken exporter and is currently registering record monthly shipments, which are expected to reach 400,000 metric tons in July, according to ABPA.

The local chicken market is also growing following an upsurge in the price of beef, which will lead Brazilian producers to increase output by 2%-3% to 13 million metric tons (mmt) in 2015, said Turra.

"While chicken prices have risen 3.3% and pork has risen 5%, beef has risen even more. As a result, chicken has replaced beef on the Brazilian dining table," said Francisco Turra, president of ABPA.

Meanwhile, economic crisis in Brazil is forcing local families to switch to cheaper proteins.

The international chicken market is expected to continue growing over the next decade, according to the U.N.'s Food and Agriculture Organization.

Over the next decade, Brazilian chicken production is expected to rise 22% to 15.7 mmt.

(CZ)

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