Inside Pigs
Is Brazil's pig sector still in a growth spurt?
The Brazilian pig sector has grown strongly recently, with the export volume breaking records for several months. Is the sector still growing and what are the future prospects?
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In Brazil, the pig sector has made great strides recently. The country has responded well to the Chinese need for pork, because African swine fever has taken hold in China. Brazilian pork exports set new records several times.
In the first quarter of 2021, a total of 25% more pork was exported than last year, according to data from the Brazilian Association of Animal Protein (ABPA). Not only have sales volumes abroad increased, but significantly more meat is also being consumed domestically. Between July 2020 and January this year, retail sales increased by 80%.
More exports due to higher production
The export figures for April are now also known. Once again an increase has been reported compared to last year. In total, 35,1% more pork was exported in April. This amounts to a total of 98.300 tons with a value of $232,3 million
The fact that more pork was exported was possible due to higher production. Over the first 3 months of the year, the number of pigs slaughtered increased by 4,9%. A total of 12,53 million pigs were hanging on the slaughter hook. Total carcass weight was around 1,15 million tonnes, an increase of 7,2% compared to Q1 last year.
New large slaughterhouse planned
To meet the growing need, Brazil plans to build a new large slaughterhouse. This will be the largest pig processor in Latin America. The slaughterhouse will be located in Paraná and can slaughter up to 15.000 pigs per day. The construction of the slaughterhouse requires an investment of $2,5 billion and employment will be significantly increased by 5.500 direct and 3.000 indirect jobs. However, it will still take some time before the slaughterhouse uses its capacity. The opening is scheduled for 2023.
Opportunities for the future
The Brazilian pig sector is therefore growing and the prospects for the future are not bad according to the ABPA. The organization believes it is possible to export a new record volume again this year. This is based on the new ASF outbreaks reported in China this year.
Chinese production is expected to recover, but for the time being this does not seem to be the case given the new import record for March. Brazil is well positioned for the Chinese market and has already moved up several places on China's list of main suppliers.