Brazil's pork exports lost momentum

Brazilian pork exports are stagnant despite low prices and high Russian import demand for replacement

Equivalent Brazilian pork prices range between 0.97 in Santa Catarina to €1.25 per kg in São Paulo. The low price level would actually help that the 4 largest pork exporter could substantially increase exports.

The conditions of a considerable increase in output are also given, but consumption in their own country grows in the ground, as the income increases. Thus, a significant part of surplus generation is bound.

The demand from Russia was seen after the import ban to the EU and the United States as a great opportunity and looked initially also very promising. The Brazilian pork prices reached the mid 2014 courses above the € 2 per kg mark. With this high cost, the sales opportunities in Russia and also have been elsewhere quickly lower. The precipitous fall in the purchasing power of the Russian ruble exacerbated the decline in exports by an additional factor.  

 The high point of exports with about 50,000 t exceededwas in the month of Oct 2014. For the whole year of 2014, summed up the export amount to only still around 500,000 tonnes, nearly the amount that has been achieved also in the average in the year 2013.  The original estimate of the USDA amounted to just under 600,000 tons.

The 700,000 tonnes of targeted for 2015 are made far away, and can hardly move the Russian shopping behavior for financial reasons. The exports in the Jan 2015 are already below the level of the same month of last year.

Pork exports to Asia are also on the agenda of the Brazilian exporters, but there is already strongly represented the North American and European competition.

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