Continuing war in Ukraine creates risks and opportunities for Brazilian poultry industry

The war between Russia and Ukraine is having a massive effect on global food production, as together the countries account for 12 percent of the calories consumed in the world, according to a recent estimate by the International Food Policy Research Institute. Moreover, strict sanctions against Russia and Belarus (which is in alliance with Moscow) have disrupted the supply of much-needed fertilizers – one of the reasons why Brazil has not wanted to confront Vladimir Putin.

Brazil depends on Russia and Belarus for almost 22 percent of its supply of nitrogenous fertilizers, and almost 42 percent of potassium-based ones. Brazilian soybean farmers have consequently become concerned since Russia launched its invasion of Ukraine on February 24. 

But the war could also bring opportunity for poultry farmers.

The Brazilian Association of Animal Protein (ABPA) has highlighted that domestic poultry production could win market share in countries that were previously served by Ukraine, Europe’s sixth-largest producer.

Greater foreign demand has already begun to impact local Brazilian consumers. Per economic research institute Cepea, domestic poultry prices rose quickly in March, especially in the latter half of the month. “The price paid per ton of Brazilian poultry was up by more than 5 percent between February...