Analysis Chicken & Poultry
Brazilian chicken price rises to 2000 dollars per ton
The average Brazilian export price has reached the highest level since August 2022, according to data from the Brazilian organization for animal protein (ABPA). The higher prices are accompanied by a significant decline in exports. In particular, the export to the Middle East is taking a significant step back.
An ABPA survey shows that the price of Brazilian chicken meat has risen to $2,089 per ton. This price is 8.9% higher than in the same period last year. In August 2023, the export value of chicken meat was $1,918 per ton.
Tighter market
The higher prices are the result of tightness in the Brazilian poultry meat market. Total exports in August 2024 decreased by 12.3% compared to the same period in 2023. In absolute terms, exports decreased from 433,300 tons to 379,800 tons. Additionally, the higher prices are not sufficient to compensate for the lower volumes. The total export value decreased by 4.5% compared to 2023 to $793.6 million. However, the export value increased in Brazilian real. In total, that value increased by 8.1% from 4.1 billion real to 4.4 billion real.
Over the entire year, the decline in exports is significantly lower. Brazil exported a total of 3.4 million tons of chicken meat. This is a decrease of 1.8% compared to the previous year, when exports reached 3.5 million tons. The export value is 7.8% lower. In total, $6.12 billion worth of chicken meat was exported. The year before, the export value was $6.86 billion. In Brazilian real, the export value decreased by 4.1% in the first eight months of the year from 34.42 billion to 33 billion real.
Decrease in Middle East demand
In particular, exports to the Middle East are decreasing. This is the result of the growing self-sufficiency of the region. However, Brazil exported the majority to the United Arab Emirates. In total, the South American country exported 39,200 tons to the Gulf state. This is a decrease of a whopping 17% compared to August 2023. Meanwhile, exports to Saudi Arabia decreased by 28% to 26,900 tons. On the other hand, exports to Japan grew by 32% to a volume of 39,000 tons. The export to South Africa also increased by 11% to 28,100 tons.
Meanwhile, the export level varies significantly by state. The largest production region, Parana, saw exports decrease by 2.7% in August compared to the same month in 2023 to 161,200 tons. Meanwhile, exports from Santa Catherina decreased by a whopping 84,200 tons. Rio Grande do Sul clearly suffered from the floods at the end of April and beginning of May. The export of chicken meat from the area decreased by a significant 42.5% compared to the previous year to 37,800 tons. Meanwhile, exports from Sao Paulo decreased by 3.1% to 23,800 tons. Only exports from Goias increased. Exports rose by 3.2% to 17,800 tons.
