Brazil chicken exporters enjoy less US competition, strong Mideast demand

By Ana Mano

SAO PAULO (Reuters) - Brazilian chicken export data indicates the outlook is positive for the remainder of 2024, meat lobby ABPA said on Monday, citing weaker competition from U.S. supplies and continued strong demand from traditional Middle East importers.

Brazil's chicken exports averaged 431,400 metric tons per month through June, 0.8% higher than the monthly average recorded for the whole of 2023, which was 428,200 tons, according to ABPA data.

The relative absence from U.S.-based chicken exporters in the market, and steady sales to countries like the United Arab Emirate and Saudi Arabia, are good signs for suppliers in Brazil, the world's largest chicken exporter, according to ABPA.

The fact that Brazil, the world's largest chicken supplier, also historically exports more in the second half of the year is also a boon.

"With a more attractive domestic market, U.S. exports are falling, which is a trend for the coming months and years," ABPA's Markets director Luis Rua said in a statement to Reuters.

He added that for Brazilian companies, this meant more export volumes destined for Latin American countries, including Mexico and Chile, allowing Brazil to reposition itself in strategic markets for products such as chicken legs and chicken breast.

By volume, Brazilian chicken exports were the best in history between April and June, ABPA said.

However, price-wise the picture is not as rosy, as Brazil's aggregate chicken export sales reached $4.636 billion in the first half, 10.3% below the $5.168 billion from the same period in 2023, according to ABPA data.

Sales to China, the top destination, have also lagged last year's level for June, slumping 29%, ABPA said.

Brazil's first-half pork exports hit a record of 613,700 tons, ABPA said in a subsequent statement. While imports by China slowed, Brazilian pork sales to Japan and the Philippines grew, marking what ABPA dubbed "a reshaping" of the country's pork exports.

(Reporting by Ana Mano, Editing by Franklin Paul and Aurora Ellis)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Floods, landslides kill 15 in India, four in Nepal as rivers rise
• Nor'easter brings flooding, power outages across US Northeast, over 400 flights canceled
• OpenAI, Anthropic CEOs called to appear at Australian AI probe