July 9, 2012

Brazil meat exports decreasing due to falling global prices

According to Brazil's Ministry of Development, Industry and Commerce, the country's beef, pork and poultry exports have experienced a significant decline in volume and revenue for June, due to falling prices throughout the global market.

Altogether, exports of beef, pork and poultry generated close to US$951.2 million in June, down 18.4% from the US$1.169 billion in collective export revenue from the same month in 2011. By volume, the three meat sectors shipped a total of 397,600 tonnes last month, down 8.6% from the same month a year ago.

Poultry exports totalled US$505 million, down 20.6% from June of last year, with export volume topping 287,900 tonnes, down 7.4% from the same month the year prior.

Pork exports fell 28.8% by revenue in June, to US$99.1 million. Pork exports by volume totalled 38,500 tonnes, down 16.4% from the 46,000 tonnes exported in June 2011.

Beef exports totalled US$346.6 million last month, down 9.8% from the US$383.9 million in revenue from June of last year. Beef exports by volume totalled 74,200 tons, a decrease of 4.6% from the same month the year prior.

The daily average export price for beef in June fell 5.4% compared to June of last year, to US$4,673 per tonne. Pork's average export price fell 15% to US$2,573 per tonne, and poultry's price fell 14.2%, to US$1,755.

Leaders from all three meat sectors have blamed drastically reduced demand this year from Argentina, Russia and to a lesser extend Europe for lower sales figures so far in 2012. Industry associations have been petitioning the Brazilian government for aid packages that would include tax cuts, and access to low-interest financing options.

Swine producers on June 15 asked for emergency aid from the government, including extending the maturities of debt and investment, increased credit limits for animal retention, and the inclusion of pork in the public Warranty Policy for Minimum Prices (PGPM).

Brazilian pork exports grew 19% by volume in May compared to the same month a year ago, but weak sales to Russia and Argentina because of trade restrictions continue to hurt the industry.