Brazilian pig sector begins recovery process in 2023, driven by lower costs and record exports

Published Dec 28, 2023

Tridge summary

In 2023, Brazilian pig farming is experiencing a positive turnaround with lower production costs and record pork exports, benefiting producers and strengthening their purchasing power. The southern regions of the country are experiencing significant appreciation in the price of live pigs due to reduced local supply, a stark contrast to the negative impact of high costs in the years 2018-2022 which led to reductions in flocks and some producers giving up the activity. Slaughterhouses also faced challenges in passing on the appreciation of live animals due to low liquidity in the domestic market.

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Original content

The scenario for Brazilian pig farming takes on an optimistic outlook in 2023, marking the beginning of a recovery driven by lower production costs and a record in pork exports. This movement represents a positive turnaround for the sector, which faced a long period of losses. Producers now benefit not only from lower production costs, but also from significant exports that strengthen purchasing power, especially in relation to the main inputs used in the activity, such as corn and soybean meal. Cepea researchers note that the southern regions of the country have experienced more significant appreciation in the price of live pigs, driven by the reduction in the local supply of independently produced animals. During the years 2018 to 2022, high costs negatively impacted the sector's margins, leading ...

Source: Portal Do Agronegocio