The Brazilian food processor BRF predicts that China and Europe will remove their trade restrictions on chicken exports during the next few weeks or months after they contained the bird flu outbreak which occurred during the second quarter.
The executives predicted market access would return swiftly because sanitary authorities confirmed the outbreak was under control during the quarterly earnings call with investors. BRF would experience a positive impact from market access restoration because China stands as its biggest poultry market.
The company stated that reduced grain prices particularly corn prices will decrease production expenses which will enhance profit margins during the second half of the year. The two essential feed ingredients for poultry production have experienced price reductions since their peak in the previous year.
The company presents an optimistic forecast after experiencing a difficult beginning to 2025 because export restrictions limited revenue and market competition forced price reductions.
