News

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.

Sources:†https://www.embrapa.br/suinos-e-aves
https://www.avisite.com.br/index.php?page=noticias&id=19301
https://www.aviculturaindustrial.com.br/imprensa/preco-do-frango-resfriado-em-sp-subiu-1314-em-um-ano-diz-iea/20181025-093149-Q616

Writing: Kit International†
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