Brazil’s pork exports Jan through May went up 5%
Brazil exported 225,000 tonnes of pork in the first five months of the year. This ia a 5% year-on-year increase. The figures were made public by Rabobank in its quarterly report on the global pig industry.
Record numbers since 2009 were made in May 2012, when 54,300 tonnes were exported. Main importers of Brazilian pork were Ukraine and Hong Kong.
Nevertheless, the Brazilian pork industry is suffering from current developments in the feed market. Between March and June 2012, soy meal prices grew by 32%. In the same timeframe, however, pig prices came down by 4%.
Low pig prices
Current prices for pigs are about 30% lower than in the beginning of April. Gross margins in pork production therefore have dropped below zero. Rabobank states that pig prices have come down as a consequence of a dropping domestic demand as the economic situation is considered bad.
In addition, the beef industry is going through better times after four years of struggling, resulting in beef having become the main meat type in Brazil. For smaller and larger independent pig companies, it is more difficult to stay profitable.
The bank expects that the Brazilian pig prices will slowly increase again in the next months.
Related website:
• Rabobank
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