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Thailand Bites into Brazilian Chicken Exports

Thailand Bites into Brazilian Chicken Exports

THAILAND – Thailand looks set to return to a leading position in the global poultry market after the EU announced that it will end restrictions on imports of raw poultry meat from Thailand on 1 July 2012.

The end of the ban could cut prices for consumers at a time when they have been hard hit by inflation in other foodstuffs.

These are some of the main conclusions coming out of a new report from Rabobank ” The Return of Thai Raw Chicken – Global players need to change strategy.”

The restrictions on one of the world’s major poultry exporters followed an outbreak of bird flu in the country in 2003.

Japan also stopped importing Thai raw poultry and is widely expected to lift its own restrictions. Brazil is set to be particularly hard hit as it is currently the major supplier to both Japan and Europe.

The 2003 ban saw the poultry sector in Thailand lose 350,000 tonnes of export volume out of a total of 500,000 tonnes and suffer from years of overcapacity.

However, in recent years the industry has shifted its strategic focus to cooked processed poultry meat, for which exports were allowed. This strategy was so successful that the industry once again reached full capacity in 2010/2011, resulting in a first wave of investments.

The re-opening of the EU and Japanese markets could see Thailand’s raw chicken production grow by 20 per cent by 2015.

The EU and Japan have long favoured Thai products for their high quality and low prices.

via Thailand Bites into Brazilian Chicken Exports.

BRAZIL – Brazil’s broiler meat production is estimated to reach 13.3 million metric tons MMT this year as a result of domestic demand and a small recovery in exports.According to the USDAs International Egg and Poultry Review: Brazil, Brazils broiler meat production is influenced by the world economic uncertainties impacting some major export markets, as well as issues with some trade partners. Other factors include an over-valued Brazilian currency, a slowdown in the growth rate of domestic consumption, and higher costs of production due to higher corn prices.

Domestic consumption of broiler meat is expected to rise at a slower rate in 2012, up 3 per cent compared to 6 per cent in 2011, due to increases in disposable incomes of Brazilian consumers and broiler meat’s competitive price compared to other meats. Broiler meat exports are projected to rise by 3 per cent. The growth in exports is likely to be driven by higher sales of whole broilers in general, and chicken parts, in particular, to China and Hong Kong. Trade sources also expect higher exports to Egypt and Iraq in 2012.

via Brazil’s Chicken Production Forecast to Rise.

Brazil’s JBS offers to buy local meat packer

(Reuters) – Brazil’s JBS, the world’s largest meat producer, made a bid to buy local meat packer Grupo Independencia in a cash and stock deal for 268 million reais ($142 million), the company said in a market filing on Monday.

The non-binding offer would be 135 million reais in JBS shares valued at 7.91 reais each and another 133 million reais in cash. JBS would not take on any other financial obligations in the takeover.

JBS shares on the BM&FBovespa stock exchange in Sao Paulo fell 5.9 percent to 7.21 reais in afternoon trade, while the main blue-chip index Bovespa was trading down 2 percent.

If Independencia accepts the offer, it would mark JBS’s first large-scale acquisition after a hiatus in recent years. Independencia has four slaughterhouses, most in the center-west, and two distribution centers in Sao Paulo state.

JBS rose from near obscurity out of Brazil’s grain-rich center-west to become the world’s largest meat producer in the past seven years through a series of major acquisitions, including U.S. Pilgrim’s Pride, Swift Foods and Smithfield Be

via Brazil’s JBS offers to buy local meat packer | Reuters.

Brazil could meet half of global meat demand

Brazil will be capable of supplying almost half of the world’s beef within 10 years, according to the Brazilian minister for Agriculture, Livestock and Supply, Jorge Mendes Ribeiro Filho.

Speaking on Brazilian national television yesterday (19 April), Ribeiro Filho said that Brazilian beef production will be able to supply 44.5% of the world market by 2020, with chicken meat expected to reach 48.1% of world exports and pork 14.2%.

Ribeiro Filho discussed a wide range of issues during the interview, including the country’s current dispute with Argentina over pork exports.

Brazilian pork exports to Argentina have dropped by almost 80% as a result of new import restrictions forcing exporters to apply for licences before entering the country. Ribeiro Filho said that he had warned his Argentinean counterpart, Norberto Yauhar, that unless the issue was resolved, Brazil might impose restrictions on Argentinean imports.

“Our meat must be released. If not, we are going to hinder the entry of Argentine products and that it is not good for anyone. Is not what President Dilma Rousseff wants. We want our trade to be revived,” he said.

Other areas covered included the importance of agriculture to the Brazilian economy. Ribeiro Filho pointed out that agriculture accounts for 70.4% of the country’s GDP and the sector employs 30m people. The livestock sector alone accounts for 29.6% of the GDP.

“Agribusiness is, without doubt, the great engine of the economy and it is largely responsible for the Brazilian trade balance surplus. If Brazil did not have the contribution of agribusiness, the country would not have the large accumulation of reserves that it currently has,” he said.

On the topic of foot-and-mouth disease, he said that Brazil had started vaccinating cattle and buffalo  in the states of Bahia and Rondônia this week.

The vaccinations in  Rondônia were given to animals under 24 months as part of a vaccination timetable set out by the Ministry of Agriculture. The vaccinations in Bahia were early due to the drought affecting the region. The second stage of the vaccination will take place in  Rondônia between October 15 and November 15, with all remaining cattle and buffalo vaccinated, Ribeiro Filho added.

via Brazil could meet half of global meat demand.

From: Globalmeatnews.com

Feb. 15 (Bloomberg) — Brazil’s poultry association said it will ask the government to approach the World Trade Organization about South Africa imposing higher tariffs on some imports from the South American nation.

These are “flagrant violations of the WTO’s anti-dumping agreement,” Ubabef Markets Director Francisco Turra said in a statement posted on the Sao Paulo-based organization’s website yesterday and dated Feb. 13. “It’s clear that South African importers’ responses and information from Ubabef about how the costs of the Brazilian products are calculated weren’t considered, besides other technical failures.”

Import charges of 6 percent to 63 percent have been imposed on the poultry for six months, as initial information showed Brazilian producers are dumping products in South Africa and neighboring countries, Francois Dubbelman of Pretoria-based FC Dubbelman and Associates, which represents the South African Poultry Association, said yesterday.

The South American producers include BRF Brasil Foods SA, the world’s biggest poultry exporter, and Seara Alimentos, the pork and poultry unit of Marfrig Alimentos SA, Latin America’s second-largest producer of beef. Brasil Foods declined to comment, the company said in an e-mailed response to a query today.

South Africa’s International Trade Administration Commission, which asked for the tariffs, will finalize its findings once interested parties have commented on the preliminary outcome, it said in its Jan. 30 report.

via Brazil Poultry Group to Approach WTO on South Africa Chicken – Businessweek.