Porto Alegre, April 18, 2024 – Brazilian pork exports slowed down in March, reaching 88,879 thousand tons, the worst volume in the last 13 months. In March/23 exports had reached the mark of 105,253 thousand tons, down 15.6%. However, the average price per ton continues to be the biggest concern, having been at weak levels for months, impacting the industry’s margin, a factor that influences the live pig business environment in the interior of the country. It is worth noting that Brazilian production is high, which is already a bad variable for price formation. In March, the average price per ton exported was USD 2,141.02.
Opening the month’s data, it can be seen that China is increasingly less active in purchases and that Brazil has managed to boost sales to other destinations. In March, 19,314 thousand tons were sent to China, the worst level since August/19. The performance was already expected, considering that the pig chain still has supply surpluses and weak prices. Furthermore, consumption in the Asian country is being affected by the economic slowdown, reducing the need for purchases. The yuan is also devalued, favoring exports to the detriment of imports, in other words, favoring the country’s trade balance. The Chinese pig chain is in the process of adjusting supply, and a favorable environment for prices should occur from the second half of the year, but the government has reserves of frozen meat to put in the market, so the country tends not to boost imports.
The Philippines was the highlight of March, recording its highest volume of the year, with 13,268 thousand tons. Another highlight was Chile, the third-largest importer of the month with 7,468 thousand tons. Japan, which until recently purchased negligible volumes, has bought around 5 thousand tons per month and paid well per ton, above USD 3,200, contrasting with other buyers that pay prices between USD 2,000/2,200. It is worth highlighting that Brazil is expanding sales to different markets precisely because of the low price, in addition to the excellent quality, gaining the share left by the European Union, which charges high prices.
With the March result, the volume exported in the first quarter closed at 274.951 thousand tons, an increase of 1.78% compared to the 270.150 thousand tons registered in the same period last year. Revenue for the quarter was USD 585.125 mln compared to USD 640.166 mln in the first quarter of 2023, a drop of 8.60%. The negative highlight in the quarter, in terms of volume, is China, with 68.732 thousand tons, a drop of 37.29% compared to the same period last year, when the country imported 109.603 thousand tons. On the other hand, the Philippines increased purchases by 104.66%, from 17.622 thousand tons to 36.065 thousand tons, being today the second-largest destination for Brazilian pork
Copyright 2024 – Grupo CMA