<\/p>\n\n\n\n
The chicken industry had a\nvery delicate moment during the first four months. Besides a problematic cost\nstructure, the crisis triggered by the coronavirus pandemic began. With the\nclosure of restaurants, hotel chains and other establishments, there was a\nstrong decline in domestic demand, resulting in an aggressive decline in\nprices, mainly in the S\u00e3o Paulo\nmarket. Exports were the counterpoint in that period, and China\u2019s strong demand\noffered a safe haven for the industry.<\/p>\n\n\n\n
As usual in times of crisis,\nthere is a need to adjust supply, and for chicken correcting the route becomes\neasier due to the shorter cycle compared to other proteins of animal origin.\nThe housing in May depicts exactly this kind of strategy. According to data\nfrom APINCO, the housing reached 524.42 million head in May. The supply\nadjustment was felt throughout the month of June, resulting in a rapid recovery\nmove along the production chain. From January through May, Brazil housed\naround 2.71 billion head, up 2.4% from the same period last year.<\/p>\n\n\n\n
Of course, cutting the housing\nis not the only reason for the price recovery in the domestic environment. The process\nof resuming economic activities in some states, however gradual it may be, has\nled to a better replenishment along the production chain. Moreover, positive\nexport data have been constant in 2020, acting as an important differential for\nthe Brazilian meat industry. The expectation is that the upward movement will\ncontinue throughout the first half of July, a period that has a more heated\ndemand. Moreover, the trend in the second half is for a reduction in animal feeding\ncosts as the harvest of the corn\u2019s second crop moves forward. Therefore, the\ncombination of higher prices and falling costs leads to the widening of the\noperating margin of the activity.<\/p>\n","protected":false},"excerpt":{"rendered":"
The chicken industry had a very delicate moment during the first four months. Besides a problematic cost structure, the crisis triggered by the coronavirus pandemic began. With the closure of restaurants, hotel chains and other establishments, there was a strong decline in domestic demand, resulting in an aggressive decline in prices, mainly in the S\u00e3o […]<\/p>\n","protected":false},"author":5,"featured_media":16595,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[95],"tags":[],"commodity":[],"class_list":["post-16594","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-highlights-en"],"acf":[],"yoast_head":"\n