Brazilian poultry sector has been hit hard by EC ban
Aurora, the third largest poultry producer in Brazil, has decided to halt production in one of the facilities owned by the company due to market conditions related to trade bans and higher feed costs.
Last month, the European Commission announced a ban on poultry imports from 20 Brazilian plants linked to the rotten meat scandal and the sector has been impacted hard.
The affected plant in Santa Catarina state employs 1,283 workers – and it is believed that staff are being sent on paid leave to adjust capacity to demand. The unit processes 12% of total slaughter capacity in the country, informs Poultry World magazine.
This is the second time in the last month that Aurora is halting production in one of its units but besides the ban dictated by EC, the company is facing further problems due to the domestic corn market going through a period of speculative retention that artificially inflates feed prices, according to a press release from the company.
Data gathered from the domestic commodity market reveals that corn prices have risen by 46.5% in 1 year. Brazil is one of the world’s largest chicken producer with a bird population of about 520 million.
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