BRASILIA: Broiler production is forecast to increase by 2.5% in 2015 to 13 million metric tonnes (MT). A figure which has been revised downwards from an earlier forecast of 5% growth due to the new economic challenges in Brazil as recession looms.
Brasilia, who compiled the semi-annual poultry report believes that a production estimate around 13 million MT is a better reflection of the current expectations of Brazilian producers for this year. Despite the 28% devaluation of the Brazilian currency since August 2014, which should boost broiler exports, there are major uncertainties with Brazil’s economic outlook that could affect broiler production.
These constraints include unpopular government cuts and tax hikes, rising inflation, rising unemployment, power shortages and higher energy costs, and a possibility of energy rationing. In view of this adverse outlook for the economy, broiler producers plan to continue with the strategy to adjust supply and demand for broilers, in order to maintain their profit margins, the report states.
