Supply and demand may drive Brazil pork prices in 2023

Published 2023년 1월 25일

Tridge summary

Despite global economic uncertainties, including a predicted national GDP growth of only 0.8% and inflation rate of 5.31%, Brazil's swine sector is expected to see growth in 2023. This growth is attributed to both stable domestic demand and increased international demand, with pork being more competitively priced compared to beef and chicken. According to CEPEA, pork production in Brazil is projected to increase by 3.3% in 2023, reaching 5.4 million tons, with a expected 4.5% increase in the number of slaughtered animals. However, high production costs could continue to squeeze swine producers' margins, especially those in the independent market, as prices for key inputs like corn and soybean meal remain high due to global supply and demand uncertainties.

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

Original content

Despite global economic uncertainties, companies within Brazil’s swine sector expect an increase this year, according to a market report from CEPEA. The projection is based on the possibility of firm demand in both domestic and international markets. The Focus Survey, released by Brazil’s Central Bank in early January indicates that the national GDP may increase by only 0.8% this year and that inflation is projected to hit 5.31%. According to the report, this could lower purchasing power, which can, in turn, could boost domestic demand for pork, as it is more competitive than other meats. Currently, Brazilian pork is more competitive than both beef and chicken meat. Data from Cepea indicates that, in 2022, prices for the special pork carcass traded in the wholesale market of the Greater São Paulo decreased 6% in relation to 2021, in nominal terms. Beef carcass and chilled chicken values, in turn, rose by 3% and 6% in the same period. The USDA estimates Brazilian exports may ...

Source: UkrAgroConsult