Brazilian pork exports feel the hit of the increased pork output in China

Brazilian pork exporters face a difficult situation as the volume shipped to China has dropped since the country increased its output quicker than predicted after its herd was ravaged by African swine fever (ASF).

In March, China was Brazil’s most important pork buyer, albeit it acquired 41.8% less than the volume imported in the same month year earlier. The Chinese market was the final destination of 34.1 thousand tonnes of the 91.4 thousand that the country exported.

See below the track record of Brazilian pork exports to China from January 2020 to February 2022. Data are from DataLiner.

Pork Exports (HS 0203) to China | Jan 2020 – Feb 22 | WTMT

Source: DataLiner (click here to request a demo)

China’s pork imports from all sources fell by 64% in the first three months of 2022, when compared to the same period last year, to 420,000 tonnes, according to data released by the country’s General Customs Administration, given the largest local production in years.

“China would eventually return to its normal production level…  The government gave assistance, and they resumed production earlier than expected,” said Ricard Santin, the president of the Brazilian Animal Protein Association (ABPA).

According to government data, China produced 15.61 million tonnes of pork in the first three months of 2022, up 14% from a year earlier, reaching the country’s biggest quarterly pork production in more than three years.

Despite the drop in exports to China in March, the president of the ABPA (an entity that represents meatpackers such as JBS and BRF) assesses that “the worst part of the problem” is behind us.

According to him, the first quarter numbers also show a higher slaughter of animals in China, with farmers attempting to reduce high feed costs, among other factors, resulting in more meat on the market.

In parallel, pork shipments from Brazil reached 237,500 tonnes in the first quarter of this year, 6.3% lower than that recorded in the same period in 2021, according to the ABPA.

Exports are employed as an escape valve to boost profit margins that have been squeezed by production expenses, which have been exacerbated by crop failures during Brazil’s summer harvest and the war in Ukraine. These circumstances have contributed to a spike in maize and wheat soy bran prices.

Source: Money Times

To read the full original article, please go to:

https://www.moneytimes.com.br/exportacao-de-carne-suina-do-brasil-sofre-com-maior-producao-da-china/

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