Brazil Expects Jumping Poultry Exports

BRASILIA - Feb 12/0 - SNS -- Broiler production is expected to continue establishing new annual records into the foreseeable future, with output this year expected to jump 6% from 7.6 million metric tons (MT) in 2003 to 8.1 million MT.

Interest in expanding poultry output is fueled by strong internal and export demand. The recent outbreaks of the dangerous H5N1 strain of avian influenza in Asia and the more benign H7 strain in parts of the United States have made the industry more optimistic because of the spate of import bans imposed this year.

"These events have soared the share prices of Brazil's top poultry exporters, such as Sadia, Perdigao, and Seara," notes the U.S. agricultural attache here. The economic outlook for those companies is helped by the massive increases underway in corn and soybean production in several countries. Improved supplies of soybean meal and corn are expected to lower feeding costs, thereby improving profit margins for poultry producers.

The increase in poultry production should sallow Brazil to expand meat exports from last year's 1.96 million MT to a possible 2.255 million MT this year. Domestic consumption is also expected to rise, but less dramatically from 5.685 million MT in 2003 to 5.85 million MT this year.

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