News item of 27-01-2012;
Brazil - Record poultry production
Brazil's poultry industry set new records in 2011 for production, consumption and exports, and saw Brazilians' per capita consumption of poultry surpass Americans' for the first time, according to year-end figures released Monday by Brazil's poultry processors and exporters association, Ubabef, during a press conference in Sao Paulo.
Brazil produced 14.3 million tons of poultry in 2011, up 6.77 percent from 2010, placing Brazil third in global production. Seventy percent of Brazil's poultry was sold domestically in 2011, with 30 percent exported.
“With this 2011 performance, Brazil has further closed the gap that separates us from China, the no. 2 producer behind the U.S.,” said Francisco Turra, Ubabef president. The association believes Brazil can surpass China in poultry production in 2012.
Poultry exports totaled 4.3 million tons by volume, up 3.2 percent from 2010, while sales receipts reached US$8.253 billion in 2011, up 21.2 percent from 2010 export revenue.
The majority of that production and export came from Brazil's three main poultry states of the south:
– Parana: 28.1 percent of Brazil's poultry production, 26.5 percent of its exports
– Santa Catarina: 18.7 percent of production, 27 percent of exports
– Rio Grande do Sul: 15.2 percent of production, 18.9 percent of exports
Slight growth in 2012
Ubabef has forecasted a conservative 2 percent growth rate for poultry exports by volume for 2012, due in part to uncertainties with the European economy, and a poor return from the first of Brazil's two corn harvests. Exports could grow more rapidly this year if Russia reopens its borders to more Brazilian processors, and if China's sanitation authority approves more Brazilian plants for export. Brazil's second annual corn crop also has a history of outperforming the first, Turra said.
Twenty-four poultry plants in Brazil are currently exporting to China, with 41 more having been “green-lit” by the Chinese while still in the final stages of approval, Ubabef said. A Chinese veterinary mission to Brazil to tour more processors could be set for after March.
Ubabef's executive team were highly critical of a Brazilian federal tax credit that went into effect in December, which provides a 4.63 percent tax credit to soy producers that sell their grain for export, saying it's clearly hurting the competitiveness of domestic meat producers.
Infrastructure needs apparent
Infrastructure investment at ports along Brazil's southern coast, as well as improving highways and railways to those ports, will be key points in 2012 where Ubabef and the poultry industry try to apply pressure for public investment. The association delivered a petition with 70 infrastructure proposals to Brazil's president and congressional leaders in 2011.
Export growth is fairly limited for poultry at the industry's main ports, like Santa Catarina's Port of Itajai (Brazil's main port for frozen poultry exports), which currently has no railway points and dilapidated highway connections. Ubabef officials said the poultry industry doesn't have the financial means to build its own transport solutions, but believes they're getting through to Brasilia on the necessity of port growth for meat exporters.
Public-private investment partnerships are rare in Brazil, due mainly to government restrictions of private influence and management of public resources. But with pressure mounting over infrastructure investment needed before Brazil's World Cup showcase in 2014, four Brazilian airports were opened to private bidders last year.
It was a first in Brazil for private management to be allowed for such a major public resource, and in recent weeks federal transportation officials spoke publicly about changing legislation to allow private investors to help improve many ports run by the state.
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