Brazilian chicken sales start to recover

By Oscar Rousseau contact

- Last updated on GMT

Brazilian chicken exports increased for the first month of 2017 in July
Brazilian chicken exports increased for the first month of 2017 in July
Global Brazilian chicken exports are starting to grow again after the rotten meat scandal, with sales slightly ahead of last year.

Brazil sold over 340,000 tonnes (t) of chicken abroad in July, a 6% rise on the volume recorded at the same point a year ago, according to data from the Brazilian Association of Animal Protein (ABPA).

It is the first month this year that Brazilian chicken exports posted a year-on-year rise. And, after beef exports recorded a 31% increase last month, the export figures suggest Brazil is back as a dominant protein trader following months of hardship due to the rotten meat scandal.

The trade figures should be taken with a pinch of salt, however, as chicken export volume from January to July 2017 are still down by more than 4% year-on-year.

‘Negative impacts’

Trade has been boosted by a weak Brazilian real, with cumulative value rising by more than 5% to $4.2bn.

The United Arab Emirates, Egypt, Japan, Mexico, Kuwait, Angola and other markets contributed to this month’s positive results,​” said Francisco Turra, president of ABPA.

Our expectation is that the rhythm will continue at this pace through the end of 2017, with the export sector recovering from the negative impacts registered during the first half,​” he added.

While chicken and beef exports have shown signs of recovery recently, Brazil is still struggling to sell pork overseas. Shipments of cuts and carcases dropped year-on-year by nearly 7% in July to 44,000t. However, as with chicken, currency volatility made exports more profitable: monthly value is up by 10% to $122m.

There was a short-term contraction in imports from specific markets,​” added ABPA’s, vice-president of markets Ricardo Santin.

The good news came from Hong Kong, which resumed imports at relatively elevated levels.​”

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