Meatpackers from southern Brazil increase imports to save more

Brazil imported less corn in the first half of 2022 compared to the same period of 2021. However, from July onwards, meatpackers in the southern states of Brazil, mainly Santa Catarina and Rio Grande do Sul, began to show an increased appetite for corn imports.

The imported volume more than doubled last month compared to July of the previous year, while the country brought in 870.3 thousand tonnes over 1.081 million in the first six months of  2021.

A total of 290.5 thousand tonnes were brought from Argentina and, mainly, from Paraguay.

If the difference year-on-year were small, it could be interpreted as a one-off.

In terms of volume, however, the trend is upward, even with the second crop in Brazil reaching 75 to 80 million tonnes.

See below for a comparison between the total volume of corn imported by Brazin in the first six months of 2022 compared to the same period last year. The data is from the DataLiner.

Corn imports from Brazil | Jan – June | 2021 VS. 2022 | WTMT

Source: DataLiner (click here to request a demo)

Vlamir Brandalizze, from Brandalizze Consulting, believes that the purchases will increase also because the pork and chicken sectors are preparing, by gathering cheaper cereal, to secure enough supply for the heated market at the end of the year, so much so that large meatpackers from southern Brazil, mainly from the west of Santa Catarina, are conducting direct imports.

“Freight is cheaper than the corn produced in Brazil’s Center-West,” says Brandalizze, in addition to the fact that corn does not have an import tariff with the origin of the Mercosur countries.

The exchange rate in Brazil also favors, which beats Chicago prices for the regional sector, adding to the lower logistics cost.

Source: Money Times

To read the full original article, please go to: https://www.moneytimes.com.br/frigorificos-do-sul-aceleram-importacao-de-milho-para-diminuir-custo-do-peru-de-natal/

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