Housing tends of chicken to make progress in 2020

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The Brazilian meat industry also suffers from social distancing strategies. In spite of being a priority sector in relation to supply, some slaughterhouses had their activities paralyzed due to the advance of the pandemic. However, the scenario is very far from what happens in the United States, with a supply crisis underway due to the closing of slaughterhouses. Besides this issue, some restaurants, hotel chains, and other establishments such as schools are closed, significantly altering the pattern of consumption.

The deepening of the economic recession in 2020 makes end consumers choose products with less impact on their average income. For the meat industry, this is no different, and there will be a predilection for more affordable cuts, such as beef forequarter, chicken, and eggs. As widely discussed, there is also the expectation of good export progress this year. In this sense, the sector is preparing a moderate growth in its supply, with emphasis on the second half.

The attached table expresses the projection for the housing of breeder chicks in 2020, with consolidated data from APINCO for the first four months. The sector works with the gradual reopening of the economy as of June, justifying the moderate increase in the housing of broiler chicks. When the recovery is consolidated, in the middle of the second semester, it will be possible to meet the domestic and foreign demand in a satisfactory manner, maintaining the pattern of domestic prices. The trend is that Brazil will house around 6.6 billion head in 2020, an approximate growth of 2.1% over 6.47 billion head in 2019.