Chicken and swine industry from Brazil reduces anticipation for exports

SAO PAULO-the production and export of chicken and pork meat from Brazil in 2017 will be below initial expectations, while companies still deal with the impacts of the investigation of the operation, Federal Police weak flesh, said the Brazilian Association of Animal protein (ABPA) on Tuesday.
The group said it expects a chicken production in 2017 of 13,100,000 tons, after your growth forecast cut to 1% before 2016, versus a growth perspective 3 the 5% disclosed at the beginning of the year.
Chicken exports also probably will increase only 1%, below expectations of 3 to 5%. The group now sees exports in 4,400,000 tonnes this year.
The investigation started in March, which investigated the health tax tuition payments by companies in the sector, closed temporarily the markets for Brazil, the world''s largest exporter of chicken.
Although none of the key buyers have maintained the suspension after the investigations, Brazil''s exporters are facing greater scrutiny, said the ABPA.
"The country has lost credibility," said the President of the ABPA, Francisco Turra.
The investigation also delayed an expected authorization to export pork to countries like South Korea and Mexico.
"We were about to receive authorization to export pork to Mexico before the start of the investigation," said Turra.
The ABPA said Brazil would continue being the largest exporter of chicken in the world, even after the scandal, which led to more stringent health controls at home and in export destinations.
The Brazil sent 7,000 containers of chicken to Europe in the first five months of the year, said the ABPA.
The industry received notifications about 3,5% of these containers, some health issues and other due to questions raised about packaging and documentation. The group said that it was not clear if any was rejected.
While not complete audits, the Brazilian Government''s suspensions are still in force for nine of the 54 chicken plants certified to export to the European Union, said the ABPA.
The group said that the brazilian production of pork in 2017 can increase up to 1,5%, to 3,750,000 tons, while shipments could increase at the same percentage, up to 800,000 tons, if the Mexico and South Korean markets open their markets.
The pork industry suffered less because of the weak flesh operation, said Turra. Earlier this year, however, the ABPA predicted that pig production and exports would grow from 2 to 3%.