Brazil’s Broiler Industry: Increasing Efficiency and Trade

Brazil’s broiler industry growth over the past fifteen years has led the country to become one of the world’s leaders in the industry. Between 1999 and 2014 Brazil’s broiler production increased from 5.5 million tons to 12.7 million tons, or 130 percent, propelling the country to become the world’s third largest producer after the United States and China. Exports have increased fivefold since 1999 with Brazil, in recent years, overtaking the United States as the world's largest chicken meat exporter. The very rapid and successful vertical integration in the poultry industry in Brazil has led to productivity growth, efficiency gains from vertical coordination, and lower production costs. We examine the costs, returns, and profitability of commercial broiler production in Brazil taking into account the country’s regional diversity in production, the size of operations, and the type of technology used.