Peruvian poultry production to grow 5% in 2014

The sale of poultry in Peru grew by 2.7% to 1202.614 metric tons during 2103, according to figures from the Ministry of Agriculture of Peru (MINAGRI).

Scotiabank projects that Peruvian poultry production would now rise around 5% in 2014.

In its report, Scotiabank found that the improvement in incomes and the growth of consumption outside the home, with a significant share of new restaurants and rotisseries in the country, would influence increased production of poultry. Broilers represent just over 90% of the poultry population and this meat is preferred by Peruvians, according to data MINAGRI and Ministry of Production (PRODUCE) Peru. In addition, the high price of beef and pork as well as the instability of the supply of fresh fish also would add to this result.

Regarding the price, so far in 2014, after recording its lowest level in May, the price has had a moderate recovery in June. “We anticipate that this situation will continue for the remainder of the year, expecting an average price similar to what was recorded in 2013,” the bank’s report stated.

The major seasonal production in the last months of the year and relative stability in the price of key inputs in the industry mean the local price would face less pressure.

However, the price could register certain periods of volatility, since its level is linked to the dynamism of domestic consumption and proper planning of supply by producers.

On the cost side, the poultry sector would have less pressure on the price of its main input. This scenario is based on a recent upward revision in the expected supply of corn for the 2014/2015 season by the United States Department of Agriculture (USDA).