BRAZIL - Most analysts forecast Brazilian economic growth to remain sluggish in 2015 but pork production and exports are forecast by the USDA to rise by five and 21 per cent, respectively.
Technically, the Brazilian economy has entered into recession and the effects of the current economic situation will impact next year’s GDP growth, estimated to rise at around one per cent.
Consumer prices are expected to be near the upper limit of the central bank’s inflation target band and consumer indebtedness will remain high.
In view of this poor economic scenario, trade sources forecast weak domestic demand for animal protein but they are optimistic about greater supplies of beef and pork for exports.
Pork production and exports are also forecast to increase in 2015 by five and 21 per cent, respectively.
Driving forces are lower feed costs due to record soybean and corn crops and higher exports due to the weaker Brazilian real and greater demand from the Russian Federation.
In general, high indebtedness of Brazilian consumers is the main constraint for slower growth in domestic demand for animal proteins.
In addition, a new federal administration will be sworn on January 2015 and could implement policies correct economic imbalance and promote stronger growth and lower inflation.
You can view the USDA GAIN: Brazil Livestock and Products Annual 2014 report by clicking here.
ThePigSite News Desk