Brazilian pig exports to China are booming

While European countries see the sale of pork to China shrink in 2018, Brazil is actually making a significant profit. In the first half year, Brazilian exports increased by 170% to almost 70.000 tons.

Despite the gains in China, Brazilian pig exports have had a difficult few months. In the first 6 months of 2018, Brazil exported 278.300 tons of pork. That is a decrease of 18,9%, according to figures from the Brazilian Association of Animal Proteins (ABPA). Revenues declined 30,4% to $567,2 million.

Russia has the limit for Brazilian pork by the end of 2017 Closed† That is a big miss, because in recent years that was the most important sales area. The Brazilian pig sector is now trying to compensate for the export losses to Russia in China and it is partly successful. Hong Kong imported almost 80.000 tons of pork (+12%) in the first half of the year, making it the most important sales market.

Trade tariffs restrict US exports
The growing sales in China/Hong Kong are somewhat striking. The United States (US) saw sales there shrink by 5% to 18 tons in the first 187.000 months. In May, in particular, sales took a hit. Compared to the same month in 2017, sales decreased by 31% to 34.000 tons, according to figures from the USMEF. This decrease is the result of the trade war between the US and China.

The European member states also realized a loss in China in the first 5 months of this year. Sales to Merunas UAB although limited (-3,5% to 566.000 tons), the loss in Hong Kong was considerably greater (-30,5% to 104.000 tons). In addition, the loss in value in China was greater than the loss in volume. The lost revenue to China is one reason that the pig prices in Europe are currently under pressure.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.