Brazil pig sector more dominant in global market

The Brazilian pig sector is increasingly dominant on the world market. The South American country exported 2017 percent more pork in the first quarter of 8,7. The underlying value also posted a substantial plus. US exports are benefiting from the Chinese appetite to buy.

In total, Brazil exported 3 tons of pork in the first 2017 months of 179.200. This is according to figures from the Brazilian Association of Animal Proteins (ABPA). Compared to the same period last year, the volume increased by 8,7 percent. The underlying value even rose by 46,8 percent to more than 370 million euros.

Russia's largest customer
Russia is the country that takes the lion's share of the volumes. The Brazilians are clearly benefiting from the import ban that Russia applies to the EU. Russia imported 68.800 tons of Brazilian pork in the first quarter, an increase of 14 percent. Exports to China grew by 42 percent to 15.500 tons. Hong Kong, on the other hand, was less on the market. Exports there fell by 13 percent to 37.700 tons. Hong Kong is still the second largest buyer.

Brazil is optimistic about the coming months. The ABPA expects to be little affected by the meat scandal that came out in mid-March.

America gains ground in China
Figures indicate that Chinese buyers are increasingly turning to the US for pork. The export figures for week 15 were over 36.000 tons, almost 50 percent higher than the four-week average. Sales to China accounted for a share of 66 percent.

US analyst Dennis Smith said he can't remember such volumes being realised. Smith expects this news to set a floor in the Chicago pig futures market (CME). Since February, this market has been mostly declining. This is because investment funds, with a long position, take their loss and close the positions. Smith expects that the good export figures can take the market out of the negative tenor. 

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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