LESS CORN FOR BRAZIL’S POULTRY
Bird flu rampages through Africa
Africa alert for bird flu
With Cameroon the latest country to detect the highly pathogenic H5N1 strain of bird flu, other states in west and central Africa are on high alert as the virus continues to spread across the region.
With Nigeria, Niger, Burkina Faso, Ghana and the Ivory Coast reported to have detected the deadly strain, the Central African Republic, Equatorial Guinea, the Republic of Congo and Chad have all expressed concern over the welfare of their flocks.
"H5N1 causes major losses of nutritious food and threatens farmers' livelihoods, particularly in resource-poor environments where governments have difficulty providing financial compensation for losses," said Abebe Haile Gabriel of the FAO. "Trade restrictions often pose an additional hardship on already struggling economies."
MHP eyes international market
MHP has partnered with companies in the Netherlands and abroad in order to better supply its international customers. The Ukrainian company, which is the equivalent of 70% of the entire Dutch poultry meat industry’s turnover last year, is co-financed by Dutch and European banks.→
MHP, which produces well below Western European cost prices, is the Ukraine’s largest poultry meat producer. Its poultry meat production is almost fully integrated, with grain produced on agricultural land the company has acquired over the years. The poultry farm branch of the company consists of hatcheries, parent stock and poultry growing farms, abattoirs and processing facilities.
The latest operation is the largest poultry farm in Europe with 12 zones of 32 poultry houses, each of which can hold at least 50,000 broilers.
Bird flu threatens neighbours
Iraq's inability to deal with cause of the H5 bird flu strain spreading through the country's poultry flocks poses a serious threat to neighbouring countries. Eleven farms were earlier reported as being hit with an outbreak that killed more than 500,000 birds, with more than 2,3-million culled to try prevent the disease from spreading.
According to Hilal Mohammed of the UN'S Food and Agricultural Organisation (FAO), Iraq's failure to implement biosecurity measures, together with a lack of controls at the country's borders, indicates a "chronic problem" that is likely to proliferate.
"Steps taken by the Ministry of Agriculture after the detection of H5 is culling the birds and the closure of poultry farms without addressing the real cause of the disease," he said.
New processing plant for Poland
As part of a long term strategy to increase its poultry meat processing, Poland's Wipasz plans to build a new meat processing plant which will expand its processing capacity to around 440 tonnes a day. The cost of the expansion is estimated to be more than Euro 45 million.
"Given our customers' demands for poultry meat and the offers we have been receiving, we decided to invest in setting up another facility to double the plant's processing capacity," said Slawomir Kawalec, Wipasz deputy president. "The new facility will process poultry meat supplied by breeders from Poland’s southern part."
Meat prices rise
The UN Food and Agricultural Organisation's Meat Index has recorded a third consecutive month of rising prices, continuing a trend that began in April this year. Strong sales of poultry from Brazil to Japan and Saudi Arabia have been accompanied by limited expansion in production due to drought in some places in the world and disease outbreaks in others.
"For 2016, meat production is expected to stagnate, rising by only 0.3% to reach 320.7 million tonnes," said Michael Griffin, FAO meat and livestock advisor.
Less corn for Brazilian poultry
Alimited supply of corn is pushing up domestic prices of poultry in Brazil as local growers capitalise on a devalued Real to export production. As a result, this significantly lower than anticipated supply of corn continues to drive up domestic corn prices, prompting buyers to turn to foreign imports with poultry producers battling to maintain operations.
This represents a massive hurdle for local poultry producers given that feed accounts for approximately 70% of input costs. Despite an initial increase in poultry production at the beginning of the year, total chicken output in Brazil has fallen by 10% over the last 3 months.¡