Asian demand sustains Brazil's pork exports

By Hannah Clarke

Brazil’s exports of pig meat (incl. offal) have continued their record run throughout the first three months of 2020. Shipments for Q1 2020 stood at 224,600 tonnes, up 27% on 2019 and the highest level of Q1 exports for the country on record.

Latest figures for March show exports were up 29% on the same month in 2019, totalling 77,400 tonnes. January and February volumes were up 35% and 19% year-on-year, respectively.

An almost three-fold increase in exports to China during Q1 (+63,700 tonnes) drove the overall rise. This follows a year of steep growth in shipments to the country amid protein shortages from ASF.

Shipments to Hong Kong, Japan and Vietnam were also higher on the year, although at a slower pace compared to that of China.

Increased Asian shipments outweighed a significant drop in volume to Russia, formerly the primary destination for Brazilian pig meat. Trade with this nation fell away significantly after a ban was in place for much of 2018, and while there was some recovery in shipments last year, it seems the Asian markets now hold better opportunities.

According to the Brazilian Association of Animal Protein (ABPA), pig meat exports from the country have not been overly affected by the outbreak of COVID-19 so far. Research from Rabobank confirms this, as Brazilian food production and trade have continued following the government decree that the work is essential. According to Rabobank, all pork processing facilities in the country are still operating, but there is some concern over grain availability for producers if haulage is affected.

Despite this, Reuters reports that following a flurry of meat plant approvals in 2019, China is not approving any new Brazilian plants in 2020 until the COVID-19 outbreak has eased. This may limit export growth to the country for the time being.

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