BRF, one of the world’s largest chicken suppliers, expects Brazil to benefit from a possible trade war between the US and China when Donald Trump takes power next year.
A move by the Trump administration to restrict imports from China – one of the main importers of US chicken – could lead the Asian country to retaliate. This would divert part of its meat purchases to Brazil, according to Leonardo Campo Dallorto, vice president of international market and planning at BRF.
More shipments to China would cement Brazil’s role as the world’s largest chicken supplier. The South American country is expected to account for about 36% of global exports next year, compared with 22% for the US, according to a US Department of Agriculture projection.
READ MORE: BRF invests in chicken production in Saudi Arabia with an eye on the domestic market
Brazilian producers, like BRF, have taken advantage of the country’s growing corn and soybean production to expand poultry stocks. Meanwhile, production in the US was limited by an outbreak of bird flu and a decline in egg fertility.
Trump has proposed a 10% to 20% tariff on all goods imported into the US and a 60% tariff on Chinese goods.
