corn prices have dropped by more than 20% in South America over the past year and farmers in the region are expected a significant record in harvesting in 2019 .
As Feed price is a large part of the cost of chicken meat production, it is anticipated that the profit from farming in these countries will reach its highest level since 2015. That's why, the volume of first-quarter sales of BRF company in Brazil has declined, but the company's revenue has been rising.
The price of soybean has Also dropped globally due to Outbreak of African swine fever, decline in Chinese request and increasing production .
The commentators believe that the corn price will rise again in the coming months, because of intense competition between United States, Argentina, Ukraine and Brazil.
Recently, Rabobank has said that pork production in China will drop at least 30 % this year. The equivalent of the total EU consumption! Hence, demand for other types of animal proteins will increase .
Finally, BRF, one of the world's largest chicken exporter, believes that the imbalance in the global supply of meat, caused by the Outbreak of this disease, can quickly enter the company to EU market.