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Brazil Hit by Loss of Competitiveness in Chicken Meat Exports

22 August 2013

BRAZIL - The Bazilian poultry organisation UBABEF reports that because of loss of competitiveness in exports of chicken meat Brazil has failed to achieve an additional revenue of US$1.650 billion and another US$94,000 through direct and indirect jobs in the last four years.

Findings in a study by the Brazilian Poultry Union's (UBABEF) investor relations manager Adriano Zerbini reveal that the main encumbrance of the competitiveness of the domestic poultry industry is the high manufacturing costs, out of which the most relevant burdens are the costs of labor, packaging and investments.

The loss of Brazil's competitiveness in international chicken markets can be observed by reducing the country's share in world exports. In the period during 2001-2004, this share was 30 per cent to 39 per cent in the period between 2005 to 2008 and falling to 37 per cent in the 2009-2012 quadrennium.

The document highlights that competitiveness in domestic poultry industry can be improved through the increased productivity of labor. The sector accounts for 347,000 direct jobs.

"We need to encourage modernization and automation of poultry agribusinesses, as well as invest in training of manpower," said CEO of UBABEF, Francisco Turra.

TheMeatSite News Desk

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