Brazil to Significantly Increase Egg Exports Amid U.S. Avian Influenza Crisis
Brazil is set to nearly double its egg exports to the U.S. by 2025 amid a severe avian influenza outbreak impacting U.S. egg production. The Brazilian Poultry and Egg Producers Association anticipates exports to reach 35,000 tons, driven by heightened demand and recent policy changes. Major Brazilian companies are actively pursuing strategies such as mergers and potential public offerings to capitalize on these market opportunities.
Brazil is poised to significantly increase its egg export capabilities, targeting the U.S. market amid the current avian influenza crisis affecting American poultry farmers. The Brazilian Poultry and Egg Producers Association (ABPA) has revised its export forecast to 35,000 tons by 2025, nearly doubling last year’s exports of 18,000 tons. This change is largely driven by the U.S. demand for eggs, particularly after recent policy shifts that now allow Brazilian eggs to be utilized for human consumption.
Prominent Brazilian companies, such as Mantiqueira Brasil and Granja Faria, are strategically seeking to enhance their market presence in the U.S. Mantiqueira Brasil, recently partially acquired by JBS SA, is exploring various business strategies including mergers, acquisitions, and potential public offerings. Granja Faria has also engaged banks to facilitate a possible initial public offering in the U.S.
The outbreak of avian influenza has severely impacted U.S. poultry farms, causing a notable decrease in egg supply and a consequent surge in market prices. American grocery stores have begun to ration eggs due to shortages, and restaurants have implemented price surcharges. In response, the previous Trump administration proposed importing approximately 100 million eggs to stabilize the market and mitigate price hikes.
In January, Brazil exported 2,357 tons of eggs to the U.S., marking a 33% increase compared to the prior year, despite such volumes being a small part of the overall U.S. egg production, which exceeded 8 billion eggs in January. An in-depth market analysis of Brazil’s chicken egg industry is available, providing comprehensive data on trends, consumption, production, pricing, and trade by 2030.
Brazil’s strategic expansion into the egg export market is timely, especially given the current U.S. avian influenza crisis that has disrupted supply chains. The proactive measures by Brazilian companies to increase exports demonstrate an adaptation to market needs and a response to evolving regulations. As the U.S. grapples with egg shortages and rising prices, Brazil’s increased exports could serve as an important solution to restoring market stability.
Original Source: www.indexbox.io
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