Optimistic Start to Year for Brazil Pig Sector


TheMeatSite News Desk

January 15, 2013


BRAZIL - There has been an optimistic start to 2013 for the pork industry in Brazil, according to the president of the Brazilian Association of Producers and Exporters of Industrial Pork (ABIPECS), Pedro de Camargo Neto.


"We started 2013 on the right foot. We expect a good year, better than 2012, without the deep crisis we experienced in the middle of last year," he said.


In 2012, Brazil exported 581,477 tonnes of pork worth $1.49 billion, an increase of 12.60 per cent by volume and 4.21 per cent in value compared to 2011.


The average price of $2,571 per tonne in 2012, fell by 7.45 per cent, compared to 2011 when it was $2,778.


The prospects and prices for the domestic and foreign markets are tight.


"We do not expect large growth in volume of exports or domestic consumption. We believe, however, average prices will be higher. International prices will not only recover but there will be greater access to foreign markets that will pay more," said Pedro de Camargo Neto.


"We want to see greater volumes to mainland China rather than to Hong Kong and more sales to Russia than to Ukraine."


As president of ABIPECS, "All of Brazil's competitor countries in foreign markets - European countries, USA and Canada - have also suffered a lot, with high input costs both in corn and bran," the ABIPECS president said.


"They are all making adjustments to production and have to force price increases. The exchange rate side has also changed from R$1.70 per dollar (early March), compared to about R$2.05 per dollar today."


Opening up international markets is going ahead but slowly Mr de Camargo Neto said.


He added that he hoped to be able to get the authorisation cleared to export to Japan in the first quarter of the year.


"Technical issues are completed and what remains now is to finalise the paperwork, which was slightly delayed because of the change of government in Japan," he said.


ABIPECS believes the embargo imposed by the health author ity of Russia on the Rio Grande do Sul, Paraná and Mato Grosso will be resolved following meetings between the Secretary of Agriculture Defense of MAP, Enio Marques Pereira and the director of Rosselkhoznadzor Sergey Dankvert in Berlin during the International Green Week next week.


In December, Brazil exported 40,456 tonnes of pork, an increase of 9.54 per cent compared to December 2011. Turnover was 0.09 per cent lower than the same period last year ($103.65 million). The average price ($ 2,562 per tonne) in December fell 8.80 per cent in relation to December 2011...