Optimistic Start to Year for Brazil Pig Sector

BRAZIL - There has been an optimistic start to 2013 for the pork industry in Brazil, according to the president of the Brazilian Association of Producers and Exporters of Industrial Pork (ABIPECS), Pedro de Camargo Neto.
calendar icon 15 January 2013
clock icon 4 minute read

"We started 2013 on the right foot. We expect a good year, better than 2012, without the deep crisis we experienced in the middle of last year," he said.

In 2012, Brazil exported 581,477 tonnes of pork worth $1.49 billion, an increase of 12.60 per cent by volume and 4.21 per cent in value compared to 2011.

The average price of $2,571 per tonne in 2012, fell by 7.45 per cent, compared to 2011 when it was $2,778.

The prospects and prices for the domestic and foreign markets are tight.

"We do not expect large growth in volume of exports or domestic consumption. We believe, however, average prices will be higher. International prices will not only recover but there will be greater access to foreign markets that will pay more," said Pedro de Camargo Neto.

"We want to see greater volumes to mainland China rather than to Hong Kong and more sales to Russia than to Ukraine."

As president of ABIPECS, "All of Brazil's competitor countries in foreign markets - European countries, USA and Canada - have also suffered a lot, with high input costs both in corn and bran," the ABIPECS president said.

"They are all making adjustments to production and have to force price increases. The exchange rate side has also changed from R$1.70 per dollar (early March), compared to about R$2.05 per dollar today."

Opening up international markets is going ahead but slowly Mr de Camargo Neto said.

He added that he hoped to be able to get the authorisation cleared to export to Japan in the first quarter of the year.

"Technical issues are completed and what remains now is to finalise the paperwork, which was slightly delayed because of the change of government in Japan," he said.

ABIPECS believes the embargo imposed by the health authority of Russia on the Rio Grande do Sul, Paraná and Mato Grosso will be resolved following meetings between the Secretary of Agriculture Defense of MAP, Enio Marques Pereira and the director of Rosselkhoznadzor Sergey Dankvert in Berlin during the International Green Week next week.

In December, Brazil exported 40,456 tonnes of pork, an increase of 9.54 per cent compared to December 2011. Turnover was 0.09 per cent lower than the same period last year ($103.65 million). The average price ($ 2,562 per tonne) in December fell 8.80 per cent in relation to December 2011.

The country exported 10,914 tonnes to Hong Kong in December 2012, an increase of 14 per cent compared to the same period of 2011. The second largest buyer in the month was Ukraine (7,407 tonnes, an increase of 78.18 per cent). Angola imported 5684 tonnes, an increase of 33.65 per cent compared to December 2011. Russia bought 5,612 tonnes, almost 100 per cent more than in the same period last year. Sales to Argentina fell 50.63 per cent (2,216 tones) compared to December 2011.

The main market for Brazilian pork in 2012 was Ukraine, with 138,666 tonnes, an increase of 124.71 per cent over 2011. The second customer was Russia: 127,071 tonnes, an increase of 0.5 per cent. The third largest buyer was Hong Kong, with 124,702 tonnes, down 3.88 per cent compared to 2011. Angola was the fourth largest buyer with 45,535 tonnes, a rise of 20.65 per cent. Argentina was fifth importer with 23,387 tonnes, down 44.36 per cent compared to 2011. China imported 3,019 tonnes in 2012.

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