Prepared or preserved poultry meat or offal market in South America

Earlier Report Observations

The Brazilian market for prepared poultry meat expanded consistently from 2018 to 2020, with volume growing from 167.6 thousand tons to 191.4 thousand tons. This growth was primarily driven by the industry's shift toward ready-to-cook products and innovative packaging, which made chicken more convenient and affordable for consumers. Lower retail prices and a wider variety of cuts further boosted per capita consumption. In 2020, despite the COVID-19 pandemic disrupting logistics and requiring adaptations in cold chain management, market volume continued to rise, though the value dipped to 590 million US dollars, likely reflecting price adjustments.

Between 2021 and 2022, market volume increased more moderately, reaching 200.3 thousand tons, while value surged by over 15% annually, hitting 788 million US dollars in 2022. A key factor was the modification of the Mercosur Common Nomenclature (NCM) for chicken parts and frozen products, which directly influenced supermarket pricing. Additionally, Brazil's consolidation as the world's leading poultry exporter, coupled with a diversification of export destinations away from China, helped balance domestic supply. Rising per capita consumption underpinned steady domestic demand.

In 2023, market volume declined slightly to 195.4 thousand tons as record-high domestic production created an oversupply that was absorbed internally. This led to price adjustments to equilibrate supply and demand, keeping the market value stable at 790 million US dollars. Large integrators and agribusinesses gained greater bargaining power, reshaping market dynamics.

Production prepared or preserved poultry meat or offal in South America

In kind, 2017-2020, K t

Top producers of prepared or preserved poultry meat or offal, 2017-2020

World map of production of prepared or preserved poultry meat or offal, 2017-2020

South America's production of prepared or preserved poultry meat or offal rebounded after a two-year decline. In 2019, output reached its lowest point at 267.1 thousand tonnes, marking a 1.3% decrease. The following year, production rose moderately by 3.6% to 276.6 thousand tonnes in 2020.

Annual dynamics of production in South America in kind, 2017-2020, K t

In value, 2017-2020, M $ US

South America's production value for prepared or preserved poultry meat or offal fell after two years of growth. In 2019, it peaked at 857.1 million US dollars, with a 5.8% increase. By 2020, the value had declined moderately by 4.7% to 816.8 million US dollars.

Annual dynamics of production in South America in value, 2017-2020, M $ US

Exports prepared or preserved poultry meat or offal from South America

Exports in kind, K t

Exports of prepared or preserved poultry meat or offal from South America declined for the third consecutive year. In 2020, volumes stood at 96.8 thousand tonnes, a 2.7% drop from the previous year. Over the 2017-2020 period, exports fell by 47.4%, with a compound annual growth rate of -19.3%.

Annual dynamics of product's exports from South America in kind, 2017-2020, K t

From 2017 to 2020, the United Kingdom, the Netherlands, and Germany were the main markets for South America's exports in kind. The United Kingdom accounted for 24.4% of exports, the Netherlands for 20.0%, and Germany for 16.7%, together representing 61.2% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South America in kind, 2017-2020

Exports in value, M $ US

South America's export value for prepared or preserved poultry meat or offal declined for the third year in a row. In 2020, exports totaled 285.8 million US dollars, reflecting a sharp 10.5% decrease from the previous year. Between 2017 and 2020, export value fell by 47.1%, with a compound annual growth rate of -19.1%.

Annual dynamics of product's exports from South America in value, 2017-2020, M $ US

Between 2017 and 2020, the United Kingdom, the Netherlands, and Germany were the principal destinations for South America's exports in value terms. The United Kingdom made up 30.7% of exports, the Netherlands 25.9%, and Germany 18.3%, jointly accounting for 74.9% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South America in value, 2017-2020

Imports prepared or preserved poultry meat or offal to South America

Imports in kind, K t

Imports of prepared or preserved poultry meat or offal into South America declined for the third consecutive year. In 2020, imports totaled 11.6 thousand tonnes, an 8.6% decrease from the previous year. Over the 2017-2020 period, import volumes fell by 29.6%, with a compound annual growth rate of -11.1%.

Annual dynamics of product's imports to South America in kind, 2017-2020, K t

From 2017 to 2020, the United States, Spain, and China formed the core of South America's imports in kind. The United States accounted for 19.0% of imports, Spain for 0.8%, and China for 0.5%, together taking 20.2% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South America in kind, 2017-2020

Imports in value, M $ US

South America's import value for prepared or preserved poultry meat or offal declined for the second consecutive year. In 2018, imports peaked at 77.4 million US dollars, with a 10.0% increase. By 2020, the value had dropped to 59.1 million US dollars, a 22.0% decrease from the previous year. Between 2017 and 2020, imports fell by 16%, equating to an annualized rate of -5.7%.

Annual dynamics of product's imports to South America in value, 2017-2020, M $ US

Over the 2017-2020 period, the United States, Spain, and China were the primary suppliers of prepared or preserved poultry meat or offal to South America in value terms. The United States accounted for 38.7% of imports, Spain for 2.1%, and China for 0.9%, jointly making up 41.8% of total imports.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South America in value, 2017-2020