March 3, 2008

Brazil's pork production and exports to rise in 2008 

Brazilian beef production is estimated to increase in 2008 by 4 percent because of firm export and domestic demand, according to a USDA attached report posted Friday (February 29, 2008).

Domestic demand is expected to rise in view of the higher purchasing power of Brazilian consumers. Higher returns to hog producers are also contributing to higher production.

Pork exports are also expected to continue to increase in 2008 due to continued firm demand from the world market, including Russia. Brazil is focusing on new markets in Asia, such as China, and began to advocate for access to the US market, the report said.

Brazilian pork exports in 2007, including variety pork cuts, increased by 15 percent in volume (591,109 tonnes versus 514,392 tonnes) and 11 percent in value (US$ 1.0 billion, versus US$ 1.2 billion in 2005). The average export price increased by 18 percent over the previous year.

Russia remains as the main market for Brazilian pork exports, although Russia's market share of Brazilian pork imports declined from 52 to 48 percent. This is the third consecutive drop in Russia's import share of Brazilian pork. Hong Kong is the second largest Brazilian market for pork exports with 15 percent market share, up 25 percent from the previous year. Ukraine is the third largest market for Brazilian pork exports, with a 10 percent market share, about the same as the previous year.