August 11, 2010

Brazilian pork exports fall marginally in July

Brazil's pork exports totalled 43,771 tonnes in July 2010, down 9.01% than a year before at 48,108 tonnes.

Brazilian Association of Pork Farmers and Exporters (Abipecs) president Pedro de Camargo Neto said that the decline is due to the European crisis; whilst EU exports have benefitted from the euro's depreciation against other currencies. Brazilian exports have been hindered by the strong real. Russia is Brazil and the EU's main pork market, and the two regions have been competing for it, he added.

Year-to-date pork exports fell 8.50% against the first seven months of 2009, to 313,468 tonnes from 342,587 tonnes. However, export revenue rose 7.68% in July against a year before and 12.57% year-to-date (to US$769.52 million).

The Brazilian market has been absorbing most of the production and pork inventories are not higher than usual, Neto said.

Meanwhile, he noted that Russia's unusually hot summer has prompted an agricultural crisis in the country, which has led to a reduction in grain exports and an increase in protectionist measures.

Despite expectations of a downtrend in 2010 exports, Abipces remains optimistic. In August and September, Brazil will receive delegations from China and Canada to inspect pork farms and processing plants.

Brazil's biggest pork buyers in July were Russia, Hong Kong, Ukraine, Argentina and Angola. Russia bought 19,420 tonnes, 2.39% less than in July 2009. However, export revenue rose 19.11%, to US$53.32 million.

Over January-July 2010 export revenue to Russia grew 19.26% against a year earlier, to US$ 391.86 million.