Brazil: High pork availability will be the biggest challenge for the sector in 2023

Published Dec 30, 2022

Tridge summary

The Brazilian swine industry is expected to face challenges in 2023 due to high pork availability, with the first half experiencing more difficulties due to factors such as seasonal demand, high production costs, and competing protein prices. Despite these challenges, Brazilian pork production is projected to increase by 3% in 2023, reaching 5.218 million tons, while exports are expected to decrease by 1% to 1.072 million tons. This will result in a 4% increase in domestic pork availability, reaching 4.145 million tons. However, the industry may face issues with prices and margins due to increased production, weakened demand, and potential decreases in imports by China.

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

Original content

High pork availability will be the biggest challenge for the sector in 2023. Next year will be challenging for the Brazilian swine industry due to availability, which will continue to expand. The first semester will be more challenging because of several factors, such as: – Seasonality of demand – Historically, pork consumption falls in the first months of the year due to the lower purchasing power of households due to the payment of taxes and the purchase of school materials. In addition, high summer temperatures impact consumption. – Production cost – The price of corn must remain at high levels in the first months of the year, considering a difficult logistical framework due to the priority of selling soybeans. Freight must go up. Another point is that the final corn stocks will be short due to the strong exports of the current business year. Soybeans must present a bearish picture due to the record production estimate. The weather is the variable to be monitored to confirm the ...

Source: UkrAgroConsult