February 2, 2012

Poultry Production Outpacing Corn Production in Parana

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

The state of Parana is not only the largest corn producing state in Brazil; it is also one of the leading poultry producing states as well. The livestock industry in the state consumes the vast majority of the corn produced in the state and it continues to increase at a faster pace than the increase in corn production. The 2011/12 Brazilian corn production is expected to be about unchanged compared to 2010/11 despite a large increase in full-season corn acreage. This year's disappointing corn production is the result of dry weather that has decimated corn production in southern Brazil, especially in the state of Rio Grande do Sul.

Southern Brazil is generally a corn deficit region and it will be even more so this year with declining corn production while at the same time that poultry and swine production is on the upswing in the region. As a result, Brazilian corn exports are expected to decline as the domestic consumption of corn continues to take an ever bigger portion of the declining production.

The state of Parana has the most advanced poultry production in the country responsible for 23.5% of the total Brazilian poultry production in 2011. In 2011, the Parana poultry industry processed 1.39 billion chickens, which was an increase of 5% compared to 2010. The total tonnage of poultry produced in Parana in 2011 was 3.07 million tons compared to a total of 13.05 million tons produced in Brazil in 2010. Historically, one third of Parana's poultry production was destined for export markets in more than 130 countries worldwide.

Over the last five years (2007 to 2011), poultry production in Parana has increased 25% (5% annual increase) and it shows no signs of letting up in the future. If anything, poultry production in the state may actually be increasing at a pace faster than the 5% per year it has been averaging for the last five years. The accelerated pace is due to the surging Brazilian economy and the steady increase in the minimum wage in Brazil that has increased the buying power of millions of Brazilians.

In 2011, the per capital consumption of poultry in Brazil was 47.5 kilograms compared to 44 kilograms in 2010 or an increase of 7.7%.