Q4 2008: Less feed in Brazil

Between January and September, feed production reached 43.3 million tonnes,
up from 37.8 mln tonnnes in the same period in 2007 – a rise of 14.7%. But
production from October through the rest of December is expected to fall to 15.3
million tonnes down from 15.77 million in the fourth quarter last year. The
470,000 tonnes produced of mineral supplements in the fourth quarter 2007
plunged to 360,000 tonnes during the same period this year.

Despite the
slowdown, growth for the year as a whole should be 9.6% when compared to 2009,
according to the association. “Caution will be needed for next year,” said
Sindiracoes president Mario Sergio Cutait. However, he does not expect the feed
sector to contract in 2009. “The world will continue to eat,” he
said.

Traditionally, during an economic downturn, red meat is substituted
with white – which is good news for the feed sector, as poultry feed accounts
for around half of all feed produced in Brazil.

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