Brazilian pork exports decrease 9.61% in the first semester

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     Porto Alegre, 14 July, 2022 – Brazilian pork exports reached their best result of the year in June, both in terms of volume and revenue. However, the numbers are lower than those registered in much of 2021, which is natural, considering that China has slowed down its purchases. The fact that deserves attention is the price per ton, in process of recovery, which, together with a stronger dollar, favors the advance of profitability in industries, so helping the business environment in the domestic market. Of course, the availability scenario in Brazil is not yet fully balanced, and the process of productive adjustment must continue to occur so that prices find healthy and sustainable levels.

     In June, Brazil exported 91.512 thousand tons of pork (fresh + processed), the highest monthly volume of the year, but 14.08% lower than that registered in the same month of 2021. China was the main importer, with 37.235 thousand tons, corresponding to 40.69% of the total for the month, a relevant number. In June 2021, China had purchased 58.493 thousand tons. The Philippines continues to be the highlight, being again in June the second main destination of Brazilian pork, with 9.491 thousand tons. Brazil has managed to capture this opportunity, remembering that the Filipinos have a supply deficit, as a result of African Swine Fever (ASF). The market shows some optimism about the opening of Canada, but for now, the numbers do not point to any volumes for this destination. Brazil may send pork to the Canadians in the second half of the year, but it is worth noting that, historically, they are direct competitors in the international market, being major producers and exporters.

     The magnitude of China against other importing players is obvious, and that is why it is more restrained in its purchases. Thus, information on the Chinese market continues to deserve attention. The average price per ton exported by Brazil in June was USD 2,362.56, which represents an increase of 13.56% over the USD 2,080.43 registered in February 2022 (the worst level of the year).

     With the result of June, exports in the first half totaled 497.976 thousand tons, down 9.61% from 550.896 thousand tons registered in the same period last year. The four main destinations four Brazilian pork in the period are Asian countries, as can be seen in the attached chart. Regarding Brazilian export revenue, it totaled USD 1.097 billion in the first semester, down 17.69% from the volume accumulated in the first six months of 2021, but it is worth remembering that the price of the exported ton is already in process of recovery.

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