Brazil and World

Chicken prices may keep increasing

Chicken prices may keep increasing in the following days. Three are the main possible reasons for this scenario: there is a tendency of China increase the import of chicken from Brazil, the consumption of this protein in Brazilian local market may be higher and the production costs might keep increasing. 
The African swine fever dissemination in China reduced the demand for pork and increased chicken prices. The country suffers with the shortage of live animals and the worry about food security decreases the consumption, increasing the demand for the second most popular meat in that region. In Brazil, second largest chicken producer in the world, the recovery of its economy also may boost the consumption in the local market and, consequently, this protein’s price.  
In one year, accordingly to Embrapa, chicken prices increased 14,21%. This rate surpasses the inflation of the period, which was approximately 4% and it is explained, generally, by the production costs growth. In 2018, only the nutrition costs rised 11,65%.
“As previously said, we will probably have a reduction of grains availability, this may keep the ration prices and the live production maintenance cost high”, remembers Giordano Luiz Fiorentin, KIT International Trade Market supervisor.

KIT Press
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