November 23, 2017
Brazil pork exports fall in Q3 amid dwindling shipments to China
Brazilian pork exports in the third quarter fell 7% to 160,200 tonnes, compared with the same period last year when it reached record levels.
In the nine months through September, exports were 4% behind year-earlier levels, at 453,900 tonnes.
However, given the appreciation of the value of the Brazilian currency, the market, in value terms, still grew 6% across the first nine months, according to AHDB Pork.
The pork division of the UK Agriculture & Horticulture Development Board said the main contributing factor in the overall decline in Brazilian pork exports this year is the substantial reduction in shipments to China.
"While Chinese demand has been lower this year in general, it is possible Brazilian shipments were particularly affected due to the reputational damage resulting from the Brazilian meat scandal in March", AHDB Pork noted. The scandal - which involved alleged bribery of government officials to approve spoiled meat - led at least 25 countries to suspend imports of Brazilian meat.
AHDB Pork also cited Chinese import statistics that showed Brazil slipping from being the seventh-largest supplier in the third quarter of 2016 to the 10th during the same period this year, losing three percentage points of market share.
Export volumes for 2018 are, however, expected to return to levels on par with 2016 following some modest expansion in production and with three Brazilian plants recently securing approval to export to South Korea. "This increasing market access should also help support export volumes", AHDB Pork said.
According to the UK levy board, the expanding presence of Brazil on Asian markets could prove challenging for the UK and the EU, more so as overall demand from South Korea and China are expected to decline next year.
"However, the positive reputation of British product may help it to maintain a presence in an increasingly competitive global marketplace". —Rick Alberto