Brazil: With expectations of record production, exports are expected to increase

Published 2024년 4월 12일

Tridge summary

The USDA has adjusted its pork production forecasts downwards due to the impact of higher feed prices and reduced food availability from El Niño weather conditions, potentially affecting producer prices and margins. In contrast, Brazil's pork exports have increased by 5% in 2023, reaching 1.3 million tons, with China as the primary market despite a reduction in its imports. This growth is attributed to Brazil's competitive pricing and lower production costs, which have enabled it to overtake the European Union in pork exports to China. With exports projected to make up 32% of Brazil's total pork production in 2024 and a 12% increase in global pork exports in the first quarter of 2024, Brazil is emerging as a significant player in the international pork market. However, the industry faces challenges such as production costs and global market volatility, raising concerns about its future prospects.

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

Original content

However, these estimates have been revised downward by the United States Department of Agriculture (USDA), attributing this moderation to higher feed prices and decreased food availability due to El Niño weather patterns. . This scenario could affect prices and net margins of producers. Given this increase in production volume, the country has the challenge of competing in the domestic market with chicken and beef, as happens in most countries on the continent. In this scenario, USDA estimated that if the price of pork continues to be lower than that of beef, consumption could increase by 3%. Even so, there remains a margin that must be placed in international markets. Brazilian pork exports continued to rise in 2023, reaching 1.3 million tons, 5% more than the previous year. While China remains the top destination, with a slight decrease compared to 2022, other markets such as the Philippines, Hong Kong and Chile are seeing a significant increase in their Brazilian pork imports. ...

Source: Infopork