BRASILIA, June 8 (Reuters) - Chicken producers in Mato Grosso state contracted to supply BRF Brasil Foods SA decided on Tuesday to stop fattening chicks next week for the world’s largest poultry exporter unless it paid higher prices to cover rising production costs.
BRF provides food for farmers to raise chickens for slaughter.
The association of chicken producers, meeting in Lucas do Rio Verde, is seeking a price hike of 10% to 12% in chicken sold to BRF, said Pablo Artifon, director of the trade group, in a phone interview.
BRF did not respond to a request for comment. (Reporting by Nayara Figueiredo; Editing by Richard Chang)