January 14, 2010

 

Brazil's pork exports seen steady in 2010

Exports for Brazil's pork are expected to hold steady in 2010 from 607,489 tonnes in 2009.

 

"We do not expect a significant change in volumes this year," Pedro de Camargo Neto, president of Brazil's Pork Industry Association (Abipecs), said. Brazil, one of the world's leading pork exporters, saw exports rise 14.7% in 2009 from 529,418 tonnes in 2008.

 

This increase was despite the economic crisis, concerns about swine flu and unfavourable foreign exchange, Abipecs said. Brazilian pork exports have remained stable at around 600,000 tonnes worldwide for the last five years.

 

De Camargo said that a main challenge in 2010 will be the exchange rate between the US dollar and Brazilian real. One US dollar was at BRL1.74 on Wednesday (Jan 13).

 

He said that Brazilian exporters should start to reap the rewards of new shipments to the Philippines and Vietnam in 2010 after opening in 2009.

 

Brazil's largest pork exporters include giants such as BRF-Brasil Foods, a merger of meatpackers Perdigao and Sadia, and rival Marfrig Alimentos SA.

 

De Camargo said that the Brazilian pork industry will lobby to open trade with the European Union and Asian countries such as China, Korea and Japan. However, he refused to comment on whether exports should begin to China and other nations this year.

 

Abipecs said that Brazil also shipped 42,740 tonnes of pork in December versus 31,080 tonnes a year ago.

 

Abipecs pegged the average pork price at US$2,000 per tonne compared to US$2,794 per tonne in 2008. Price should gradually strengthen in 2010, De Camargo said as the economic conditions improve and concerns of swine flu abate.

 

As a result, revenue from pork exports should strengthen in 2010 after falling 17% in 2009 to US$1.2 billion.

 

The overall main destination for most of Brazil's three million tonnes of pork would be the Brazilian domestic market, he said.