Bolivia

43% dip in prices for Bolivian poultry

Poultry

Oversupply in the market combined with low consumption of animal protein is forcing small producers to exit the sector.

Posted on Mar 10 ,08:35

Poultry market in Bolivia is going to a short-time crisis due to surplus production reported in the first two months of the year and fluctuating consumption of animal protein in the domestic market, reports Avicultura magazine.
At the beginning of March, poultry prices (per kg) have dropped from $2.20 to $1.30, a plunge that is impacting small producers in the country. In February 2020, the output in the sector was 21 million birds delivered in the market, while the average monthly consumption is estimated at 18 million broilers. The increase in production comes from major producers, said Ricardo Alandia, president of the National Association of Poultry Farmers. According to him, February is also the month with the lowest level in animal protein consumption in Bolivia and surplus production added in the market has created this dramatic drop in prices. At the same time, Winston Ortiz, vice president of the National Federation of Poultry Farmers and head of the Association of Poultry Broilers, warned that small producers are exiting their businesses as the market is sinking. "Small poultry producers are harmed by the low price of chicken. So far, approximately 35% of poultry farmers have abandoned this activity," he said.
One other voice insisted that the sector must expand to export markets in the region but one big obstacle is seen in the high cost of production. "Chicken prices abroad are not very attractive to the Bolivian industry. Therefore, it is focused on 100% supplying the domestic market. One way to stabilize chicken meat prices in Bolivia is to be able to export surplus production," said Mario Anglarill, president of the Bolivian food industry association.

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