Brazil: Mexico is the newest meat market

Published 2022년 12월 1일

Tridge summary

The Mexican market has been opened for Brazilian pork, which could help reduce the supply and increase prices in Brazil. The move could be beneficial for pig farmers in Minas Gerais who have been facing high costs and unprofitable prices. The opening of new markets, such as Mexico, can help control the supply and remunerate production costs. Domestic consumption of pork in Brazil has increased, and it is expected to rise further due to the holiday season. However, the cost of pig farming is discouraging new investments, leading to a narrow margin and a loss for the industry from January to November 2022.

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

Original content

The announcement of the opening of the Mexican market for Brazilian pork could help to reduce the supply of the product on the domestic market and stimulate prices. Throughout 2022, pig farming in Minas Gerais faced the challenge of high costs and insufficient prices to guarantee profitability. A kilo of live pigs is traded, on average, at R$ 7.30 in the state – a value that equals costs. The opening announcement was made by the Ministry of Agriculture, Livestock and Supply (Mapa). According to the director of the Pig Farmers Association of the State of Minas Gerais (Asemg), Fernando Araújo, the price of pork has been stable for a few weeks. The year has been considered challenging both for pig farmers and slaughterhouses. The opening of new markets can contribute to supply control. “There is an excess of production in Brazil and also in Minas. The higher supply prevents remuneration from paying production costs. We are experiencing a global scenario of very low carry-over stocks ...

Source: Diariodocomercio