January 16, 2023

Growth for Brazil's pork industry expected, despite economic challenges

Brazil's pork industry is expected to grow this year, despite economic uncertainties.

According to researchers from economic research center CEPEA, there may be increases in domestic and foreign demand.

In Brazil, purchasing power is expected to remain weakened, which increases domestic demand for pork, which is more competitive compared to other meats such as beef.

Furthermore, industry strategies to invest in diversification and positioning of pork in the domestic market should be maintained this year, strengthening the demand for the protein, CEPEA stated.

As for the foreign demand for Brazilian meat, the United States Department of Agriculture estimated that national exports will increase by 2.7%, while the Brazilian Association of Animal Protein estimated a 12% increase. This will depend on the industry's diversification of destinations and the consolidation of partnerships signed last year.

On the supply side, estimates made by CEPEA indicated a possible increase of 3.3% in national production from 2022 to 2023.

However, it is important to note that the high cost of production should continue to put pressure on the profit margins of Brazilian pig farmers, especially those who operate in the independent market, CEPEA stated.

- CEPEA (Brazil)