Prices for Brazilian poultry and pork expected to jump by 20%
Brazil may have a record year in poultry and pork exports but the products are becoming scarce in the domestic market, which makes it more expensive. According to Francisco Turra, chairman of the Board of the Brazilian Animal Protein Association (ABPA), prices of feed have doubled in the last few months due to low harvest volumes of corn and soy reported in the state of Rio Grande do Sul.
Mr Turra believes that the final price will not double, but an increase of up to 20% in products is expected. Allied to this, the sector still has very high investments to meet the adaptations in the industrial platform, aiming at the adoption of health and prevention protocols and other requirements of the inspection bodies of the work environment in relation to the coronavirus pandemic.
On the other hand, in a few years, the Chinese pork market may become a trap for Brazilian producers, who are now exporting high volumes of pig meat to the Asian country. According to a report released by Itau BBA's agribusiness consultancy, in a few years, the Asian country will resume production levels in the pre-African swine fever period, which will reduce import demand. Apparently, 2021 should be the first year of advancement in Chinese production after the ASF crisis.
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