Which country is the most prominent exporter of pork in South America?

Brazil is the third-largest producer of pork and the 7th-largest exporter.

Production

Brazil produced 3,856.65 MT of pork in the year 2019 and was ranked the world's third-largest producer of pork. Pork production is forecasted to set another record in 2020 at nearly 4.2M MT, an increase of 4.5% from last year. The increasing production is an outcome of record pork exports and growth in domestic demand. The main producing states were Santa Catarina (29.59%), Paraná (19.85%), and the Rio Grande do Sul (19.26%). All of them are part of the Southern region, which contains around 68% of Brazilian pork production. Brazilian prices have remained the lowest of the key exporters, and have recently experienced a sharp fall (-9% from the end of 2019).

Export Trends

Pork exports are expected to increase by 15% in 2020 due to the impact of African Swine Fever (ASF) in China, Vietnam, and other parts of the world. Brazil’s pork exports rose by 28.4% in the first 4 months of 2020, despite the effects of the pandemic. Between January and April 2020, the sector shipped 280.8K MT of pork, compared to 218.7 MT in the same period in 2019. Trade sources foresee a continued increase in pork exports to China and Hong Kong in 2020, despite earlier COVID-19 troubles in China. From January to February of 2020, pork exports increased by over 41%, based on volumes exported daily, as compared to the same period in 2019. Brazilian pork packers believe that China will reach the peak of pork imports in 2020 and then stabilize in 2021.

Export Trends in 2020

Brazilian pork exporters are focusing on markets other than China to expand exports and decrease their dependence on the country. The outbreak of ASF in China and in several other countries has prompted Brazilian pork exporters to focus on exports to several Asian countries, such as Japan, South Korea, Singapore, and Vietnam. Brazilian exporters and government officials are also engaging in market promotion in Angola, Chile, and South Africa. Currently, large Brazilian packers are investing in pork production capacity to meet the world demand for pork. The outbreak of African Swine Fever (ASF) in China and other parts of Asia will continue to raise international demand for pork from other countries. Brazil is currently facing a unique situation in supplying pork to the world without any major sanitary issues and has taken significant steps forward in the sanitary status of the swine industry. A combination of a devalued Brazilian currency and expected stable domestic prices will likely keep Brazilian pork export prices competitive in the world market.