Priciest corn ever is gobbling up margins on Brazilian chicken

Oct 30, 2020 at 08:27 AM CST
Bumper corn crops typically signal cheap feed and fat margins for chicken producers in Brazil. Not this year though, as strong exports and increasing demand from the biofuel industry have sent grain prices soaring. Despite back-to-back record corn harvests, domestic prices of the yellow grain have jumped 68% this year to an all-time-high, according to University of Sao Paulo research arm Cepea. With feed accounting for most poultry costs, producers have seen their margins evaporate as they’ve been unable to pass on the additional expenses to consumers.

Oct 30, 2020 at 08:27 AM CST

Bumper corn crops typically signal cheap feed and fat margins for chicken producers in Brazil. Not this year though, as strong exports and increasing demand from the biofuel industry have sent grain prices soaring. Despite back-to-back record corn harvests, domestic prices of the yellow grain have jumped 68% this year to an all-time-high, according to University of Sao Paulo research arm Cepea. With feed accounting for most poultry costs, producers have seen their margins evaporate as they’ve been unable to pass on the additional expenses to consumers.