Brazilian pig exports up 27%
Brazilian pig meat exports have jumped 27% in volume for the first 4 months of the year, reaching 390,000 tonnes. China has increased its demand for Brazilian pork by 40% compared with the same period last year, reaching a share of almost 50% in shipments. Other increases in trade came from Brazil’s closest South American neighbours, and volumes to Angola also rose.
So far, Brazilian pork exports are covering 30% of the domestic production. Nevertheless, increased demand from China may trigger an inflationary effect on the domestic market, which in the end will lead to more and more shipments diverted to China and aggressive competition between suppliers in this market. "Continued weakness in Brazil’s currency, the real, will have two effects: further improving the competitiveness of Brazilian product on world markets, and increasing domestic prices, eroding demand at home. Although rising in volume by 27% in the first four months of 2021, price rises meant the total value of exports rose by 52%. As Brazil’s export demand represents only about 30% of its production, volumes available to ship are particularly sensitive to domestic demand,", commented Duncan Wyatt, AHDB's Lead Analyst - Red Meat.
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