Brazil’s Chicken Production Surge Adds to Global Oversupply

Brazil is set to further boost its chicken production through the end of 2024, intensifying the current global chicken surplus. Recent market oversupply has negatively impacted Brazilian meatpackers’ profits and prompted US companies like Tyson Foods to cut capacity. The ABPA, representing major companies like JBS SA and BRF SA, forecasts a 3% increase in 2023’s chicken output to 14.95 million tonnes, and up to 4.5% growth in 2024. Though Brazil had been expected to produce 15 million tonnes in 2023, the adjusted projections signify a gradual reduction in Brazil’s output to align supply with demand. With 35.6% of the global chicken supplies coming from Brazilian exports, an 8% increase is expected for end-2023, reaching up to 5.2 million tonnes. Major buyers include China, Japan, UAE, South Africa, and Saudi Arabia. Notably, China’s imports of Brazilian chicken surged by 33% and are predicted to rise due to a decrease in its internal chicken production.