Expressive increase
in pig and poultry
feed inputs,
particularly corn, was
a major barrier faced
throughout 2016
dish
Over-salted
The constant increase in corn prices,
along with more expensive soybean meal,
have led the chicken and pig farmers to bet
on more affordable costs for these inputs
during the first half of 2016, although this
desire has not come true. The evaluation
was expressed by the president of the Na-
tional Union of the Animal Feed Industry
(Sindirações), Ariovaldo Zani, who shows
the main digits over the period. From Jan-
uary to June, the producer of meat chick-
ens had to purchase 16.8 million tons of
feed, representing an increase of 4.2%,
in response to the confinement of young
chickens, which was up approximately
4%, and to the vigorous exports of chicken
meat, favored by the Exchange Rate and by
new global opportunities.
“The insufficient relief in the produc-
tion cost and the appreciation of the Real,
combined with the fragility of domestic
consumption, are expected to discour-
age the idea of confining the young chick-
ens, with a consequent reduction in the
amount of meat and, consequently, less
demand for feed in the second half of the
year”, he explains. The production of feed
for laying hens, in turn, amounted to 2.6
million tons and was up 2%, due to export
opportunities and the campaigns encour-
aging the consumption of eggs.
In spite of this, young chicken confine-
ment lost its allure in the second half of
the year, still due to the high cost of the in-
puts and the economic crisis that is chal-
lenging the domestic budget. In pig farm-
ing, Zani notes that the strong recovery of
UNCONTESTABLE IMPORTANCE
Bird feed is viewed as essential for competing the productive cycle. Corn and soybean
meal, together, compose almost 80% of the poultry feed and the remaining portion of the
food supplementation. “Aswe go through difficulties in terms of supply and production of these
essential inputs for animal feed, the sector needs to redefine its production program”, notes the
executive director of the Rio Grande do Sul State Aviculture Association (Asgav) and of the
Rio Grande do Sul State Union of Aviculture Products (Sipargs), José Eduardo dos Santos.
According to the official, the high cost observed in Rio Grande do Sul in 2016 forced the
bird and egg producers to slow down their production in order to minimize losses, thus re-
ducing the impact of the financial flow of the supply chain. The price is seen as the main dif-
ference in comparison to 2015, besides the corn exports, which outstripped considerably the
volumes shipped abroad last year.
For 2017, the expectation is for a balance between offer and domestic consumption of
the product, which should stabilize prices as a whole. “With the corn import operations that
occurred in 2016, the sector started a new supply culture, which could continue should we
again face domestic supply difficulties and expressive price hikes”, he anticipates.
pork exports and rising interest showed
by the domestic consumers on account
of the higher prices for beef have had a
potentiating effect on slaughters, includ-
ing breeding stocks. “On the other hand,
the pressure of corn-based food prices
and soybean meal has led to the termi-
nation of lighter animals and ended up in
the production of 7.9 million tons during
the first half of the year “, he notes.
Zani believes that the persistence of an-
imal feed on high cost and the uninterrupt-
ed decline in the purchasing power of the lo-
cal consumers could inhibit pig slaughter and
the supply of pork, resulting into smaller pro-
duction of feed in the second half of 2016, al-
though end-of-the-year celebrations tend to
encourage the consumption of protein.
Sílvio Ávila
61
