By Ana Mano
SAO PAULO (Multibagger) - Brazilian chicken export data indicates a positive outlook for the remainder of 2024, according to meat lobby ABPA. The organization cited weaker competition from U.S. supplies and continued strong demand from traditional Middle East importers as key factors driving this trend.
ABPA data shows that Brazil's chicken exports averaged 431,400 metric tons per month through June, which is 0.8% higher than the monthly average recorded for the whole of 2023 (428,200 tons).
The absence of U.S.-based chicken exporters in the market, along with steady sales to countries like the United Arab Emirates and Saudi Arabia, bode well for suppliers in Brazil, the world's largest chicken exporter, as per ABPA.
Additionally, the historical trend of Brazil exporting more chicken in the second half of the year adds to the positive outlook for the industry.
ABPA's Markets director Luis Rua stated, "With a more attractive domestic market, U.S. exports are falling, which is a trend for the coming months and years." This shift is expected to lead to increased export volumes for Brazilian companies, particularly to Latin American countries such as Mexico and Chile, positioning Brazil strategically in the global market for products like chicken legs and breast.
By volume, Brazilian chicken exports reached their highest levels between April and June, according to ABPA.
However, in terms of pricing, the picture is less optimistic, with Brazil's aggregate chicken export sales totaling $4.636 billion in the first half of the year, a 10.3% decline from the same period in 2023, as per ABPA data.
Furthermore, sales to China, the top destination for Brazilian chicken exports, were lower in June compared to last year, dropping by 29%, ABPA reported.
In a separate statement, ABPA highlighted that Brazil's first-half pork exports hit a record of 613,700 tons. While imports by China slowed, Brazilian pork sales to Japan and the Philippines saw growth, indicating a shift in the country's pork export landscape.
Analysis:
In summary, Brazilian chicken exports are on the rise, driven by reduced competition from the U.S. and sustained demand from key Middle Eastern markets. This trend is expected to continue in the coming months, with Brazil repositioning itself in strategic markets. However, pricing challenges and fluctuations in sales to top destinations like China pose potential risks to the industry's growth. On the other hand, the record-high pork exports indicate a positive outlook for Brazil's meat industry overall.