Reduction in domestic demand, prices and production costs, maintenance of productive activities and expansion of exports. These were some of the impacts observed from the Covid-19 pandemic on the broiler, egg and pork production chains. They resulted from a study carried out by Embrapa Swine and Poultry in the production sector.
One of the main effects recorded was the drop in demand in the domestic market, mainly due to the reduction in consumer income and the closure of restaurants, schools, bars and tourism activities. The dynamism of consumption was practically restricted to supermarkets, according to researcher Franco Muller Martins, one of the study's authors. “Until the end of the first four months, production did not stop at any time, that is, it did not suffer disruptions like other sectors. Even with the increase in exports seen so far, the country will have to seek to export even greater production surpluses”, reveals the scientist.
According to researcher Dirceu Talamini, another author of the study, production costs were already at high levels at the beginning of 2020, especially due to the devaluation of the exchange rate, but tend to balance out below the values of the first four months. The highlight, according to him, is the price of corn, one of the main inputs for these production chains, which has lost competitiveness in ethanol production due to the price of oil.
“The short and medium term scenario is still very uncertain, especially with regard to demand and the spread of the disease. The optimism of the animal protein production chain is in the long term, envisioning a greater effort to increase exports and adapt domestic consumption, as well as avoid disruptions in the logistics of supply, slaughter and distribution”, details researcher Marcelo Miele, also author of work.
The study was carried out from April 20th to 30th, through structured interviews with key actors in the broiler chicken, egg and pork production chains. Leaders and members of producer associations and agroindustry associations from all regions of the country were interviewed. The study focused on the search for qualitative and prospective information to support the strategic management of Embrapa and the Ministry of Agriculture, Livestock and Supply ( Map).
Source: Industrial Pig Farming
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