Pork blights Brazil’s meat progress
Hog and pig carcases decreased by -2% in the first half of November in Brazil, despite enjoying increased demand from Russia, which is currently suffering from an EU-wide import embargo.
Shipments of pork in Brazil fell from 2.1 tonnes (t) in October, to 1.8t per day in November, after enjoying eight months of growth.
Reasons for the unexpected dip in performance are credited to number of factors. These include a truck drivers’ strike which was preceded by a nationwide strike of federal pork inspectors.
The supply of pork also continues to outpace demand and it is the combination of the two strikes and cooling demand that has caused pork to underperform, according to the Centre for Advanced Studies on Applied Economics (CEPEA), based in Brazil.
Buoyant beef
Elsewhere in the market, chicken and beef prices are buoyant, with increases of 4% and 0.5% for the former and latter respectively.
The increase in poultry is down to burgeoning domestic demand, coupled with optimised production costs, record shipments of exports and trade deals with Gulf states beginning to add value.
Brazil’s beef industry – still reeling from the World Health Organisation’s (WHO) report that claims beef and pork are likely carcinogens – saw low supply boost domestic prices.
Overall it has been a solid month for Brazil’s meat and there is cause to feel bullish about the next quarter. However, it will be interesting to watch the performance of pork to see if it will continue to fall like it has done in Europe.
