January 31, 2023

Brazilian meat processors concerned over China's demand for Brazil corn

Sindicarne, a meat processors' group from the major Brazilian meat-producing state of Santa Catarina, expressed concern about China's increased demand for Brazilian corn this year, Nasdaq reported.

The group said Chinese buyers are already reducing local supplies, making corn used to feed poultry and pork an overpriced commodity.

Sindicarne said the meat sector is prepared for negotiations and more aware of its stocks and purchases, but there is always competition from the international market.

Brazilian corn exports to China were approved late last year after both countries revised their trade protocols. Several vessels have been booked since then by companies such as Cofco.

Corn exports shipped from Brazil's southern port of Paranagua increased to nearly 570,000 tonnes through January 29 due to increased demand from China. According to the port authority, this represents a 161% increase in volume over January 2022.

Sindicarne, which represents global poultry and pork processors such as JBS and BRF, said that the Brazilian government must do its part to attract investments to reduce Brazil's logistical bottlenecks.

While Brazil has a good logistics network for exporting grains, the group said that there are no railroads connecting grain regions in the centre west to southern Brazil, where pork and chicken are typically raised and processed.

-      Nasdaq