June 14, 2012

Brazilian pork export volume rose 19% for May

Brazil's pork exports have resumed growth, with revenue and volume gains in May over the same month in 2011, boosted by a favourable devaluing of the Brazilian currency which helps to offset losses in Russia and Argentina.

Brazil exported 53,404 tonnes of pork in May totalling US$138.4 million in revenue, registering growth of 18.7% and 9.3%, respectively, from the same month a year ago, according to data released by Brazil's pork processors and exporters association, Abipecs.

For the year thus far, sales are up 5% by volume (224,870 tonnes), but have dropped 0.7% in total revenue (US$579 million). The average value per tonne of pork regressed nearly 8% in May (US$2,591), a loss offset by a depreciation of the Brazilian currency that helped exporters earn more per tonne in sales abroad.

The growth in May should be considered impressive because of the on-going lost opportunities from the Russian trade embargo, which has lasted one year, and a more than 90% drop in sales to Argentina from trade complications since February, Abipecs said.

Sales to Russia fell 12.5% by volume in May (13,814 tonnes) compared to the year prior, and 17.6% by revenue (US$41.49 million). Sales to that market through the first five months of this year are down 47.5% by volume and 48.6% by revenue (US$134.4 million) compared to the same span in 2011.

Brazilian pork sales to Argentina have almost vanished completely. Sales in May dropped nearly 100% for both volume and revenue compared to the year prior, registering 94 tonnes and US$195,000. For the year thus far, exports there are down 64.8% by volume and 62.3% by revenue.