Brazil: housing of breeder chicks grows in the first five months of 2024

Chicken farming has been very favorable this year, with excellent margins considering that, besides a strong export rhythm and better domestic chicken prices, there is also an interesting reduction in costs in view of more affordable animal nutrition.

In this environment, there is a natural stimulus to production. It is no coincidence that the housing of breeding chicks reached a record level in the first five months of the year. According to data from APINCO, from January to May around 2.93 bln chicks were housed, an increase of 3.25% compared to the same period last year.

May’s data deserve special attention, as around 607.4 mln chicks were housed, an increase of 0.1% compared to the same period last year. Such data draw attention not because of the meager growth but because of the significant housing even in a month when Rio Grande do Sul was unable to provide normal housing, as a result of the floods that caused massive damage in the state. In May, housing in Rio Grande do Sul hit 61 mln chicks, against 69.7 mln chicks in the same period last year. In other words, the other states, especially PR and SC, compensated for the production losses in Rio Grande do Sul.

For the entire year, Brazil should house around 7.07 bln chicks, which is an unprecedented record. Despite excellent profitability, it is important to highlight the need for production control to prevent a harmful excess supply, as already observed in previous moments. In any case, even with record production, the strong pace of shipments combined with improvements in domestic indicators offer a healthy outlook for the sector.

Tags: Brazil, prices, Production, chicken, profitability, breeding chicks, chicken farming