Porto\nAlegre, November 19, 2020 – Brazilian\nexports of animal protein performed well in October. The overall\nbalance remains very positive. As already discussed, the result is a\nconsequence of the strong pace of purchases from China throughout the\nyear, seeking to fill the supply gap formed by African swine fever\n(ASF). The news of the replenishment of the pig herd in China is\nrecurrent, however, meat production will not increase suddenly, as\npig farming has a cycle that needs to be respected. It is likely that\nproduction starts to show a gradual recovery from the last quarter of\n2022.<\/p>\n\n\n\n
For\nthe last two months of the year, the expectation is that China will\nabsorb even more significant volumes of meat from Brazil, evaluating\nthe start of stock planning to meet demand on the country\u2019s main\nholiday, the lunar new year. The preliminary figures for November\nalready show a good growth in the pace of shipments, which tends to\naccelerate in the coming few weeks, emphasizing that the exchange\nrate parity keeps Brazilian animal protein highly competitive in the\ninternational market. By way of comparison, an arroba of fattened\ncattle costs around USD 75 in the United States, while in Brazil the\narroba costs just over USD 48, which undoubtedly reflects in the\nprice of the traded beef.<\/p>\n\n\n\n
Pork\nexports are still the highlight of the meat industry\u2019s trade\nbalance in 2020, with an emblematic growth of 42% over the same\nperiod last year. From January to October, Brazil shipped\napproximately 839 thousand tons of pork, against 590 thousand tons in\nthe same period of 2019. In terms of revenue, the result is even\nbetter, of nearly 1.86 billion dollars, an increase of around 50%\nfrom the same period last year. China still accounts for\napproximately 50% of Brazilian pork exports. Logically, this\ndependence is the main justification for Brazilian shipments to\napproach 124 thousand tons per month.<\/p>\n\n\n\n
The\nresult of monthly beef export was within market expectations. The\nresult remains positive, above 275 thousand tons in carcass\nequivalent. The highlight remains with beef exports to the Chinese\nmarket, with more than 100 thousand tons shipped in carcass\nequivalent. This year to date, Brazil exported roughly 2.42 million\ntons, an increase of approximately 11.5% in comparison with the same\nperiod last year.<\/p>\n\n\n\n
For\nchicken, the overall performance is more discreet compared to the\nother two proteins. This movement is justified by a lower volume\nexported to traditional importers, such as the countries of the\nMiddle East and Japan. With a possible recovery in these markets, the\nexpectation is that the good pace of shipments will resume. From\nJanuary to October, Brazil exported around 3.43 million tons, an\nincrease of 1.1% compared to the same period last year. Revenue\ndecreased around 12.3% due to the exchange rate variation between one\nyear and another, bringing down the average price of Brazilian\nchicken. It is very important to note that chicken shipments have\nbeen satisfactory for some years, Brazil traditionally exports\nbetween 4 and 4.3 million tons, maintaining the leadership of global\nexports of this protein.<\/p>\n\n\n\n
With\nthe expectation of an excellent pace of shipments during the last two\nmonths, there will be consequences in the domestic market. The high\nin raw material has already triggered a reaction amid the main\nBrazilian meat-packers. The intention is to reduce the slaughtering\ncapacity to mitigate the effect of increasing costs in 2020. The\nbullish movement seems to be close to a limit in the entire sector,\nand end consumers already show evident signs of saturation, in a\nstrong process of consumption migration.<\/p>\n\n\n\n
SAFRAS\nLatam<\/p>\n","protected":false},"excerpt":{"rendered":"
Porto Alegre, November 19, 2020 – Brazilian exports of animal protein performed well in October. The overall balance remains very positive. As already discussed, the result is a consequence of the strong pace of purchases from China throughout the year, seeking to fill the supply gap formed by African swine fever (ASF). The news of […]<\/p>\n","protected":false},"author":16,"featured_media":18078,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[95],"tags":[],"commodity":[],"class_list":["post-21401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-highlights-en"],"acf":[],"yoast_head":"\n