Pork production costs rise in Brazil, export value falls

In October, exports of Brazilian pig meat (all products, fresh and processed) continued the year’s upward trend in volume so the total for the year to date reached 444,900 tons – 5.3 percent more than the same point in 2014. According to the Brazilian Association of Animal Protein (ABPA), however, revenue was down by 21 percent at US$1.065 billion. For the month of October, the volume of pork exported was down just marginally at 51,500 tons but its value in foreign currency was 41 percent lower at US$117.1 million.
“With the pork prices in 2014, combined with problems in the international market resulting from the political crisis in Eastern Europe, we were able to achieve record revenue last year,” said Francisco Turra, chief executive of ABPA. “This year, the international flow has adjusted and the market stabilized so normal price levels have returned, leading to the drop in revenue from exports.”
Russia was the main destination for Brazilian pork in October, accounting for 42 percent of the total, and 10 percent more than in the same month of 2014. For the year to date, shipments to the Russian market are up 30 percent on last year at 200,000 tons. October exports to the next most important markets for Brazilian pork - Hong Kong and Venezuela – were up by 13 percent and 113 percent, respectively, from the same month in 2014.
Following a meeting with Brazilian agriculture minister, Katia Abreu, the Chinese Ministry of Quality Management, Supervision, Inspection and Quarantine (AQSIQ) announced it had authorized 7 new slaughterhouses in Brazil to export meat to China, including 2 for pigs. The expectation is that each establishment will export products valued at between US$18 million and US$20 million per year, according to Brazil’s agriculture ministry.
This positive development in export prospects may come as some relief to Brazilian pig producers, who experienced an average 5.2 percent increase in cost of production in October compared to the previous month. The rise brings the national ICPSwine/Embrapa index to 205.1 points compared with the baseline of 100 in January 2005. The index has risen 16.4 percent since the start of 2015.

September pork exports from Brazil up 46 percent from 2011

September pork exports from Brazil rose 45.98 percent in volume and increased 38.47 percent in revenue compared to the same month last year, according to the Brazilian Pork Industry and Exporter Association, Abipecs.
Pork exports in September totaled 60,440 tons and shipments totaled US$157.65 million, making this the best month of the year, both in volume and in revenue, despite a 5.14 percent drop in the average price. For the full year, the country exported 428,180 tons, 9.72 percent more than the same period of 2011, with revenue US$1.09 billion.
Ukraine was the main destination of Brazilian pork, importing 23.49 percent of the export volume this year; Russia was second with 23.04 percent; Hong Kong was third with 21.66 percent.

Brazil pig meat exports fall

Brazil's pig meat exports for the first four months of 2011 fell 4.3% by volume, but sales were 7.16% higher by value. Between January and April, the country exported a little over 169,000 tons with a value of US$456.49 million.
During April, exports were 0.6% lower compared with April 2010, totaling just under 60,000 tons with a value of US$145.41 million, an increase of 9.99%. “The numbers for April are no surprise," said Pedro de Camargo Neto, executive president of the Brazilian Pork Industry and Exporter Association. "Volumes continue to be relatively stable when compared to last year. Fortunately, unit prices have continued to rise, compensating for exchange rate difficulties. Brazil is losing, however, the opportunity to grow sales.”

Strong currency harming Brazil’s pig meat exports

The value of Brazil’s exports of pig meat increased by 5.9% over the first three months of this year, however in volume terms exports fell by 5.82%. Exports between January and March stood at 118,169 tons, with a value of US$311.07 million.
President of the Brazilian pig producers and exporters association, ABIPECS, Pedro de Camargo Neto commented: “Brazil has lost exports due to the strength of its currency. Brazilian pig meat, like many other products, has become more expensive than that of its competitors. Fortunately, the home market has remained strong, preventing the build-up of stocks.”
The main export countries for Brazilian pig meat over the quarter were Russia, Hong Kong, Argentina, Angola, Singapore and the Ukraine. While exports to Brazil’s main export market, Argentina, were higher in January and February, in March, volumes fell by 13.85%.

Brazil boosts pork and chicken exports

Brazil has expanded its pork and chicken markets. As a result of negotiations between the agriculture ministries of both countries initiated last February, the Philippines started importing from eight processing plants in the Brazilian state of Santa Catarina, according to reports in the Brazilian press. The country imported 10,000 metric tons of chicken meat in 2008 from Brazil.
The decision to purchase pork and chicken is unprecedented and, according to Brazilian Minister Reinhold Stephanes, demonstrates the confidence this country has in the Brazilian veterinary service. The Philippines already imports beef from Brazil.
In the case of pork, the Philippines demanded the product originate from a foot-and-mouth disease-free area, without vaccination -- a requirement Santa Catarina meets. The state has three chicken exporting units, and after negotiations become a reality, there will be five more plants authorized for exporting pork.
"A few months ago, we opened up the pork market to China and the mission of the ministry is to intensify efforts in opening up the market for this sector to other countries in that region", Stephanes said.