Brazilian Pork Expanding into New Markets

by 5m Editor
2 April 2012, at 7:45am

BRAZIL - While the Brazilian pork industry saw a 4 per cent decline in its exports in 2011, a significant shift in the destination of these exports was evident.

For many years Russia, was the main destination for Brazilian pig meat exports, accounting for over 50 per cent of total shipments over recent years. However, a ban on imports from Brazil in the middle of 2011 led to a fall in volumes resulting in that market accounting for less than a quarter of total volumes. As a result, a greater focus was placed on alternative markets, with significant increases in volumes to Hong Kong, Ukraine and Argentina.

New export markets are now opening up for Brazilian pig meat. In late 2011 the US approved the Brazilian state of Santa Catarina, one of the largest pig producing states in Brazil. While volumes are not expected to be significant, the profile of US access is certainly a benefit to the industry in terms of perception in other countries that they are seeking to supply to such as Japan, South Korea and Mexico.

The most significant development for the Brazilian industry has been the gaining of access to the Chinese market in late 2011. While volumes are small at the moment with only 52 tonnes supplied in January, China is viewed as a huge potential for the industry. Currently only three plants have been certified by the Chinese authorities but this is expected to increase. Given the volume of Brazilian exports they could become a significant player in the Chinese market in the coming years, increasing the competition for European suppliers.

According to a recent USDA report, the Brazilian pork industry is growing fuelled by a 10 per cent increase in domestic per capita consumption in 2011 and a recovery in exports in 2012.