Increased demand for pork make prices jump in Brazil
With a 40% increase in export volumes, the Brazilian pig industry is enjoying a tremendous year for the sector. With the coronavirus pandemic, the demand for food increased worldwide, and a large part of Brazilian production was sent to Asian countries.
"The main buyers of Brazilian pork are, basically, China and Hong Kong. Almost 70% of the total exported volume is destined for these places", says Edmar Gervasio, technician Department of Rural Economy of Parana. The state is the third-largest exporter in the country and should close 2020 with about 120,000 tonnes of pork shipped abroad. "The pig chain has grown a lot due to the events that occurred in China with the African swine fever. The exchange rate was also very favourable, so we managed to have high profitability in the business and that which leveraged pig farming this year," declared Leonardo da Rocha, cooperative manager, for the Globo Rural newspaper. Due to increased demand for Brazilian pork prices have jumped quickly to levels never reached before. At the beginning of 2020, farmers received a price of $0.83/ kilo, while at the end of the year it was $1.35. That development encouraged investors to put money in the sector hoping that 2021 will prove to be another successful year for the Brazilian swine industry. However, at the end of this year analyst are foreseeing a drop in pork imports from China, as the country is rebuilding its pig herd in order to reduce the dependency on meat imports.