During his keynote presentation on global, regional and national regulations at the la Cumbre Avícola Latinoamericana (Latin American Poultry Summit) held during the 2022 International Production & Processing Expo, Osler Desouzart, chief executive officer of OD Consulting, remarked that Latin America has gained a good position in the international poultry market.
“Although the international market now includes the street in which you live, it is no longer a local, international or global market. Instead, it is a glocal market,” he told attendees. “Today in the market, a competitive price, quality and flexibility to serve the client are no longer distinguishing attributes, but the minimum necessary to enter a market, and mostly, to stay in the market.”
The new values of the consumer, and the passwords for success, are traceability, certifications, food safety, health concerns and sustainability (e.g., social, economic and environmental value), as well as animal welfare. Desouzart went on to mention that consumers want to know what they are eating, where it comes from and how it was produced. They also want a guarantee that the food is safe for their health and the environment and that the meat comes from healthy, well-treated animals, he added.
As part of his discussion on the transport of poultry, Dr. José Antonio Delfino, professor at the Universidad Federal de Ceará in Brazil, described his research objective of analyzing the air flow in conventional transport cages used in Brazil. He remarked that it is very important to measure ventilation inside the loaded cages. To obtain the proper ventilation inside the cage, several factors need to be studied, including distance to travel, travel time, weather, speed of the truck, the type of road, and the chicken density of the cages. Delfino studied these factors at four different speeds and noted that when there is less ventilation, there is more mortality.
Jorge Garcia, founder of Prelude Harvest LLC, provided an overview of the grain market. He began his presentation by stating that “crises are a constant in this business, because we buy at high prices and then sell at lower ones.” Three years ago, corn was at $3.00/bushel, and now it is at $6.00.
Garcia analyzed the supply and demand of corn, soya and soya bean meal since 2020 and discussed what to expect for 2022. He commented that between 2020 and 2022, the world has increased corn production by 7%, and consumption has also increased 5%. During that same period, the world production of soya bean has increased 7.7%, and consumption has also increased 5.2%. The U.S. has produced more soya beans as well as Brazil, with a total world production increase of 4.2% and global consumption increase of 3.9%. Garcia predicted that grains will be more expensive in 2022, remarking that there is an expectation of big volatility in prices from May to August in 2022.