Brazil’s pork and poultry exports are expected to rise in 2020 as an extended outbreak of African Swine Fever (ASF) in China pushes demand from that country higher.
Brazilian pork shipments are poised to increase by 15-20pc in 2020 to an 850,000-900,000 metric tonnes (t) record, Brazil’s pork and poultry exporters association (ABPA) said today. It does not exclude a volume even larger depending on China’s appetite.
The Asian country imported 51pc more Brazilian pork between January-November this year versus the same period in 2018, taking the leadership among the main importers. The higher imports come after a series of authorizations for Brazilian plants to export.
China has been dealing with an ASF outbreak since last year that is expected to affect around half of its pig herd. The nation may take five years to restore its pork supply and has been boosting imports to make up for this domestic disruption.
Other types of meat have been in high demand as well, such as poultry.
ABPA forecasts that Brazil will ship between 3-6pc more poultry next year in comparison to 2019, reaching a record of 4.3-4.5mn t.
ABPA sees Brazil’s pork output totaling around 4.2mn t in 2020, up to a 4pc increase year on year. Brazilian poultry production was pegged at 13.6-13.7mn t next year, up by 4-5pc.
Brazilian pork and poultry producers may face higher production costs next year as corn prices remain high in many regions of the country as 2019 was marked by strong demand and record exports.
ABPA does not see a domestic corn shortfall but mentioned that some companies have contracted imports of the grain for delivery between January-June next year because of more attractive foreign prices compared to the local market.
Via Argus – By José Roberto Gomes