Dependence on few markets puts Brazil's agro exports at risk

Published 2021년 6월 9일

Tridge summary

Saudi Arabia's sudden suspension of chicken meat imports from 11 Brazilian slaughterhouses has highlighted a potential risk for Brazil's agribusiness sector, indicating the dangers of relying heavily on a few consumer markets. This situation is reminiscent of China's reduction in pork imports, highlighting the need for Brazil to diversify its export markets and consider technological innovation to expand food security. Experts suggest that Africa could emerge as a significant agricultural hub, challenging Brazil's dominance in soy export markets. Rabobank's animal protein analyst, Wagner Yanaguizawa, emphasizes the importance of strategizing for a future where trade barriers are likely to increase, underscoring the risks of dependence on a limited number of importers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The sudden suspension of chicken meat imports from 11 Brazilian slaughterhouses announced a month ago by Saudi Arabia, still without official justification, can be considered a warning for agribusiness as it exposes one of Brazil's greatest weaknesses in the international market: the concentration of exports in few consumer markets and the consequent dependence of these countries. Containers at the port ready for export of agribusiness products (Photo: Disclosure) “This seems to me a bit like the case of Russia years ago. They were already signaling and, at a certain moment, it happened”, says the agribusiness consultant at Itaú, César de Castro Alves, when comparing the Saudi plans with the Chinese goals for meat production. “This question of the future of chicken exports without Saudi Arabia is a bit like the future of pork without China when they recover from swine fever. It is not something for the short term, but Saudi Arabia was once a much bigger market for us”, recalls ...

Source: Agroinforme