Brazil’s leading poultry producing state of Santa Caterina is expected to cut production by five to eight percent due to falling prices coupled with weak domestic demand for poultrymeat.


Increases in the cost of feed are also putting a squeeze on producers with the cost of maize, the main feed for birds in Brazil, increasing by up to 60% more than a year ago.

Cuts are expected more broadly in the Brazilian poultry sector as the year goes on owing to a slowing of the domestic economy with cuts set to take months to be felt at the supply end.

Overall 2.6% more chicken will be produced this year compared to last but due to falling meat prices earnings will be similar to 2010 at around £7.9bn.