April 26, 2012

Poultry Sector in Parana Continues to Receive Heavy Investments

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The state of Parana, which is already the leading poultry producing state in Brazil, continues to receive investments aimed at expanding the industry at the rate of 10% per year for at least the next several years. In 2011, 116 million chickens per month were processed in the state and during the first three months of 2012, that increased to 120 million per month.

The state of Parana is responsible for 30% of Brazil's total poultry production and approximately 30% of the state's poultry production is exported, principally to the European Union and the Middle East. According to the Syndicate of Poultry Industries in the state of Parana (Sindiavipar), poultry exports from the state brought in US$ 2.048 billion in 2011, which was 20% more than the US$ 1.695 billion brought in during 2010.

Domestic consumption of poultry is also on the rise in Brazil. In 2011, per capita consumption of poultry hit 47.4 kilograms, which was 7.5% greater than in 2010. Brazilian poultry consumption has actually surpassed that of the U.S. which was 44.4 kilograms per year in 2011.

During 2012, R$ 250 million will be invested in new plant construction and increasing the capacity of existing facilities across the state of Parana. One of the largest projects is a new processing facility in northern Parana built by BR Frango. The R$ 120 million facility was inaugurated in early April and once it is fully operational, it will have the capacity to process 420,000 chickens per day. Another plant built by the Cocari Cooperative has the capacity for 350,000 per day. Other companies such as: Frangos Cancao, Gold Frango, Mister Frango, Bellaves, and GTFoods have also invested in new facilities or the expansion of existing facilities in the state. The poultry industry as a whole in the state employs 550,000 people.

According to Embrapa, the cost of producing chickens in southern Brazil including Parana, Santa Catarina, and Rio Grande do Sul remained nearly unchanged in March 2012 compared to March of 2011 at R$ 1.78 per kilogram.