March 2, 2015

Trucker Strike Impacted all Segments of Brazilian Economy

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

As you would expect, the trucker strike has had far ranging impacts on all sectors of the Brazilian economy, but here are a few of the highlights (or lowlights) for the ag sector.

  • According to the Brazilian Animal Protein Association (ABPA), hog and poultry slaughter is off by more than 50% since the strike has begun. Sixty meat processing facilities are either shut down or on reduced schedules, mostly in southern Brazil. Millions of chickens and hogs have not eaten for several days and animal deaths are being reported.
  • Poultry producers say it will take 45 days to resume normal production schedules after the strike ends.
  • Feed manufactures are closed due to a lack of corn and soybean meal, feed deliveries to poultry and hog producers have been suspended.
  • Soybean crushing plants are closed due to lack of soybeans.
  • Meat processors are warning of spoiled products due to refrigerated trucks being stopped on the highways for days.
  • Farmers are being forced to dump their milk and dairies and food processing facilities are shut down.
  • Supermarkets are running low on meat products. Brazil is the largest poultry exporter in the world and poultry supplies are running out at the ports.
  • Grain supplies at the ports are running out and grain loading will slow down or stop if new supplies don't arrive soon.

This is just a partial list of all ripple effects of this strike. Imagine what would happen in the U.S. if all of a sudden all the trucks stopped moving. Now, double or triple that because of the very heavy reliance on truck transport in Brazil!