Background Meat export
Brazilian meat exports are gaining ground, why is this?
According to a recent analysis by research firm GIRA, Brazil will become the most favorably localized supplier in the global meat market this year. The country's competitiveness will increase in the coming years. Why are Brazilian meat exports doing so well?
In the month of August, Brazilian meat exports grew strongly. 25% more chicken meat was exported and beef exports increased by 43%. The biggest step was taken in the pig sector, with no less than 120% more pork being exported than last year.
Record high prices
At the end of July, pig prices in the country had already risen to a record high as a result of the combination of buoyant exports and a limited domestic supply. The price has since gone up even further.
At the beginning of September, the average price for pork in the state of Santa Catarina, the main supplier in Brazil, was 7,61 Brazilian real per kilo, converted to €1,21. Pork prices also continue to rise in the southern state of Parana. At the end of August, the average pig price was 7,17 Brazilian real per kilo, converted to €1,12.
Brazilian real favorable
Research firm GIRA predicts that the competitiveness of Brazilian meat products in the global meat market will increase in the short term. The reason for this is a devaluation of the currency and increased production. Analysts say the Brazilian real is weakening against the US dollar. Analysts at the Bank of America also expect global demand for Brazilian meat products to increase.
Difficult year
However, next year is expected to be a difficult year. Not only for the Brazilian meat sector, but for all major meat exporters. Given the danger of the African swine fever and the resulting increasing demand for pork, such as in China, a disruption in the balance and supply is expected.
Chanti Oussoren
© 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.