FROZEN CHICKEN

Brazil is the 3rd largest producer of broilers in the world and 1st place in export.

Brazil is the 3rd largest broiler producer in the world, behind the United States (USA) and China. In 2009 it surpassed the USA, reaching the 1st place in exportation. It also occupies a good position in egg production, 7th place.

The largest consumers of Brazilian products are the Middle East with about 40%, Asia consumes 31%, Europe 15%, Mercosur countries consume 5% and others reach 9%. Already the countries that most import meat to Russia, Japan, EEC, Mexico, China, Hong Kong and Saudi Arabia.

Poultry production generates around 2 million direct and indirect jobs throughout Brazil, contributing to a significant increase in the economy. The southern and southeastern regions are the largest producers, but there is an increasing production in the central-west region due to the production of corn and soy. The states that most produce the chicken are the states of Paraná (27%), Santa Catarina (26%) and Rio Grande do Sul (23%).

The low cost with investment in facilities and high production of grains, favors the production of chickens in Brazil.

 

In the Brazilian farms, technological excellence in genetics, management and ambience guaranteed productive leaps that made the country the third largest producer of chicken meat, with more than 12 million tons of chicken per year.

Today, more than 150 markets are importers of chicken meat made in Brazil. By the ports of the country, almost 4 million tons are shipped annually, almost a third of everything that is produced in the country.

With the combination of high technology of ambience, genetics and maize and soy based food produced in Brazil, in an integrated system between producers and slaughterhouses, Brazilian Chicken reached rare differentials. As a result, the internationally recognized quality has made the Brazilian product one of the most competitive in the world market, with unique taste and texture, reduced fat levels and extremely healthy.

 

 

 

 

 

At the same time, Brazil has reached an unequaled level when it comes to sanity. There has never been any record of Avian Influenza in Brazil - the only country with this status among the major poultry producers. Our industries and our farms follow strict sanitary protocols, in a highly technified environment, within the standards established by Codex Alimentárius (FAO) and with full respect to animal welfare standards.

All production is accompanied by a complex and detailed program of the Brazilian Ministry of Agriculture, the National Program for the Control of Residues and Contaminants (PNCRC), which evaluates the self-controls adopted by the poultry industry.

The versatility of the Brazilian poultry industry to precisely meet the demands of customers, demands and tastes of the five continents ensured Brazil's consolidation as a world leader in exports and an important partner in food security in several extremely demanding markets, such as the European Union and Japan.

 

According to the order, the companies that stand out are BRF, JBS, Aurora, GT Foods, Copacol, C. Vale, São Salvador Alimentos, Zanchetta, Cooperativa Lar and Nutriza. It is important to say that JBS numbers do not include the slaughterings of companies acquired in the course of 2014 (Big Chicken, Blue Sky and Tyson). In any event, JBS remains the second largest in the industry.

 

 

 

 

 

 

 

 

 

Why BRF loses more than JBS with China's chicken fares?

The decision by the Chinese Ministry of Commerce to impose an antidumping tariff on broilers imported from Brazil has a different effect on the actions of the two largest domestic slaughterhouses.

Chickens imported from Brazil are subject to tariffs varying from 18.8% to 38.4%, an initiative that may be part of a Beijing effort to impose a price policy on the product.

The tax hit BRF, Brazil's largest chicken exporter, and amplifies the adversity suffered by the company, which was already facing the total embargo of the European Union.

JBS is less dependent on chicken meat production in Brazil compared to BRF. In addition, the possible reopening of the Chinese market for chicken meat is positive for the company. In the United States, JBS controls the American Pilgrim's Pride, the second largest producer of chicken meat in the United States.

In addition, the new rates will vary by company. According to the Ministry of Commerce of China, the rate to be applied to BRF products will be 25.3%. In the case of Seara (JBS unit), the tariff will be 18.8%. Cooperativa C.Vale will have the highest rate, 38.4%. Prior to the Chinese decision, the average import tariff for chicken meat was 10%.

The tariffs imposed by the Chinese government on Brazilian chicken meat are not prohibitive enough to close the market. He said rates (ranging from 18.8% to 38.4%) may be considered high, but not impractical. He points out that the Chinese have already imposed a 60% rate on the United States as a measure of comparison.