Chicken and pig industry feels less pressure to offer of corn

After the slowdown in production of chicken meat and pork in the country, a result of corn shortage in the domestic market, the industry has a lower pressure for the supply of grain since the start of the second half, reported today the Brazilian Association of Animal protein (ABPA).
In a note, Francisco Turra, ABPA''s Chief Executive, said that it is expected that the demand for corn of two productive chains is reduced by more than 1 million tons in 2016, before the retraction of the forecast production in the second half, already established by the ABPA in July.
Corn is used in the feed of livestock and grain supply was lean (and higher) in recent months, due to the heated and exports to drop in the brazilian crop commodity.
In the accounts of the ABPA, chicken production in 2016 should total 13,000,000 tonnes, 4% less than the 13,500,000 planned at the beginning of the year. In the case of pork, the projection is 3,640,000 tons, low of 3.2% in relation to 3,760,000 forecast in January.
These reductions are derived from the   strategies adopted by companies in the sector to decrease production, such as the suspension of work shifts and the closure of some plants.
Even as the positive perspective Turra, for the supply of corn is also influenced by the Paraguayan and Argentine grain offering, in addition to the good performance of the first brazilian crop, especially in the South of the country, which concentrates 70% of the production of chicken meat and 80% of swine. Still, the ABPA considers "essential" that is made possible the importation of u.s. corn to Brazil.   "With this, we face shortages in the first half should not be repeated," said the President of the Association.