Lack of poultry competitiveness loses Brazil billions
The study, conducted in partnership with consultancy firm Agro.Icone, revealed that Brazilian poultry exports could have generated additional revenues of $1.650bn and 94,000 direct and indirect jobs over the last four years if the country had not lost out market share to competitors.
It stated that if competitiveness issues were not improved, the country would have lost out on a further 103,000 direct and indirect jobs in the poultry chain by 2020.
The study revealed that Brazil’s share of total world poultry exports was 39% in 2008, but fell to 37% in the four years of 2009-2012 in the face of competition from other exporting countries. It said the main factor affecting the competitiveness of Brazilian exports was high manufacturing costs, with labour costs a particular challenge.
Looking at how to improve the performance of Brazil’s poultry sector, which accounts for around 347,000 jobs in Brazil, the study said focus should be given to reducing labour costs through automation and worker efficiency. It added that Brazil’s government should take measures, such as facilitating access to credit, lower interest rates and tax relief on the purchase of inputs, to encourage the poultry sector to innovate.
Commenting on the study, UBABEF CEO Francisco Turra said: “We need to encourage the modernisation and automation of the poultry industry, as well as investing in the training of the workforce.”
However, he added that despite “difficulties identified in the study, all scenarios indicate that Brazil will continue as the world’s largest exporter of chicken meat”.
He pointed out that the country had easy access to inputs such as corn and soybeans, and was benefiting from favourable exchange rates. “And you can create a window of time required to implement a strategy that encourages investments for the reduction of manufacturing costs,” he said.
The study was conducted with input from Brazilian poultry companies which account for 70% of Brazilian poultry production between them. The findings will be presented during the International Exhibition of Poultry (SIAV) in São Paulo on 27-29 August.
The document highlights improving competitiveness in the domestic poultry industry through the increased productivity of labour. The sector accounts for 347,000 direct jobs.
