Brazilian pig farming begins 2020 with a positive outlook, in a favorable economic environment, which must favor domestic demand. In addition, good export performance, driven by Chinese purchases, must continue, which will contribute to adjusting the availability and possibility of readjustments in wholesale and live pig prices.
Domestic demand is likely to evolve moderately in the first quarter of the year, considering that household income is impacted by additional expenses, as well as by the payment of taxes. Economic indicators are showing that Brazil must grow compared to 2019, with a reduction in unemployment level, boosting demand, but the increase in consumption must occur gradually over the year.
The flow of shipments will continue as a key factor for pork prices in the country in 2020. Brazilian pork exports in 2019 were record, reaching 718,800 tons (in natura and industrialized), an increase of 14.09% over 2018. China was the main importer, with 240.8 thousand tons, accounting for 33.5% of the total. In second place came Hong Kong, with 158.8 thousand tons, with a share of 22.09%. According to a forecast by SAFRAS & Mercado, pork exports are expected to reach 809.533 thousand tons in 2020, up 12.6%.
