Brazil and World
Brazilian Chicken Slaughterhouses have been operating at a loss
In accordance to Embrapa, the Brazilian Organization of Farming Research, the chicken slaughterhouses are running again with reduced profit or with losses. In September / 2018 the cost of live birds reached R$ 2,95 / kg. This is the third highest value in history, keeping lower only of R$ 3,04 / kg and R$ 3,13 / kg, obtained in the fateful year of 2016.
Regarding the same period of 2017, the cost of live birds increased by 28%, affected mainly by the cost of grains and mandatory price list of freight, which was one requirement of the Truck Drivers' Strike.
Corresponding by 60% to 65% in the cost of the final product (frozen chicken), this increase on cost production deeply impacts on a company's results because the selling price is not increasing in the same proportion.
Writing: Kit International