Brazil poultry glut set to squeeze producer margins Domestic demand soft as supply growth continues6 August 2026 6 August 2026 1 minute read 1 minute read By: By: Global Ag Media South AmericaA glut in Brazil's poultry market is likely to pressure the margins of producers JBS and MBRF in the second half of 2026, Reuters reported, citing a note from JPMorgan on Wednesday. The bank said, after speaking with more than 10 small and mid-sized poultry producers and exporters, that all expect profitability to decline in the period mainly because poultry supply remains too high, consumer demand in Brazil is weak and beef and pork prices are falling. Some producers are sending lighter birds to market, which could be an early sign that supply is starting to adjust. The bank added that domestic demand remained soft, with consumers under financial pressure, while lower beef and pork prices were also weighing on chicken demand. Some producers told JPMorgan profitability could bottom out in the third quarter, with margins gradually recovering by the end of the year if supply begins to adjust.