Francisco Turra, head of Ubabef, the country's poultry association, told Reuters that 20 of the association's 80 members were experiencing financial problems because of rising feed costs. Prices for soy have risen 80 percent in the last six months and 40 percent for corn, according to data from Ubabef.
Brazil accounts for 41 percent of global chicken production compared to 33 percent for the US, according to Reuters. July chicken meat production in Brazil declined 10 percent below the industry's average monthly production of 1.1 million tonnes. The organization attributed the decline to a spike in feed costs, which account for 60 percent of poultry producers' expenses.
Brasil Food, JBS and Marfrig announced price increases. Fitch Ratings downgraded its outlook for all three companies on Aug. 17.
