The Brazilian pork industry requests time to meet export quota and agility in granting licenses

On Thursday, February 17, the Brazilian Pork Industry requested an extension on the deadline for exporting the agreed-upon quota of 100 thousand tonnes of pork, as well as more flexibility in granting licenses to ship the product, according to the Brazilian Association of Animal Protein (ABPA).

According to the group, which represents some of the most important meatpackers in Brazil, like JBS, BRF, and Aurora Alimentos, the Brazilian pork industry can meet the current quota until June of 2022. The idea of being pushed forward is to extend the deadline to the end of the year.

“At the Russia-Brazil Business Council meeting in Moscow, we raised some points such as strengthening inter-country relations through the trade of animal protein,” ABPA president Ricardo Santin told Reuters.

“We also requested more flexibility in issuing licenses to comply with this 100-thousand-tonne quota, as Brazil is currently the only country authorized to use it; the United States and the European Union are not,” he added.

See below the track record of Brazilian pork exports to Russia over the last three years. The data is from DataLiner.

Pork (HS 0203) Exports from Brazil to Russia | Jan to Dec 2019 – 2020 | TEU

Source: DataLiner (click here to request a demo)

Brazil’s competitors in the pork export market, such as the European Union and the United States, have plants authorized to ship to Russia, but “there are political and geopolitical limitations that prevent these countries from shipping the products,” said ABPA’s market director Luis Rua.

This scenario raises Brasil as the only major supplier capable of enforcing the quota.

Rua also explained that the Russians control shipments by emitting licenses to importers that want to purchase the protein.

According to Rua, the government issues the licenses, and global logistical challenges have made the export process more time-consuming. “Russian authorities must issue these licenses more quickly.”

The executive contends that deferring or even increasing the quota period is the best scenario depending on Russian demand. Given the logistical difficulties in getting pork to Russia, “it will be necessary to speed up the issuance of these licenses” if the export period is not extended.

Source: Money Times

To read the full original article, please see:

https://www.moneytimes.com.br/brasil-pede-ampliacao-de-prazo-para-cota-de-carne-suina-a-russia-e-agilidade-em-licencas/

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