Source:  Andre Sulluchuco, MEATINGPLACE.COM, 5/18/11

Francisco Turra, the president of the Brazilian Poultry Union (UBABEF), announced that some national companies have decreased their poultry production by 5 percent to 8 percent due to the high price of feed, such as corn and soybean, the Brazilian news source ODiario.com reported.

"There are companies in such [states] as Rio Grande do Sul and Minas Gerais where it’s difficult to buy feed at prices that pay-off for the labor," said the UBABEF president.

Turra noted that not all Brazilian states have a uniform pricing structure; rather, it depends mostly on location and surrounding weather conditions. "In the mid-west region [of Brazil], for example, prices are 20 percent higher than in other parts [of the country] due to the difficulty of buying corn," he added.

He declined to predict corn prices for the rest of 2011, instead anticipated when the public should expect to hear any news. "We'll just sleep better or not after mid-June, when we’ll have a better perspective for crop harvests," he said.

Poultry production might even dip in Mato Grosso state due to ongoing droughts. The freezing temperatures in Paraná, a state south of São Paulo, and its subsequent risk for frost have prompted additional concerns.

The UBABEF is the largest entity in the Brazilian poultry industry and is composed of state agencies, an advisory board, agricultural organizations, and 12 chambers.

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