March 8, 2022


Brazilian meat companies could replace suppliers from Ukraine and Russia



Rising grain prices caused by Russia's invasion into Ukraine are affecting Brazilian meatpackers, but industry sources said trade disruptions facing Ukrainian and Russian meat producers could be an opportunity to increase Brazil's share in worldwide trade, Reuters reported.


Ukraine and Russia account for nearly 29% of worldwide wheat exports and 19% of corn exports, which are used as livestock feed.


Russia's invasion into Ukraine could result in Brazil accessing its competitor's markets. Sources told Reuters that Europe could abolish a ban on several Brazilian meatpackers that was imposed in 2018 after a food sector scandal.


Ricardo Santin, president of meat lobby ABPA, said the Brazilian meat industry is prepared to cover gaps in exports of chicken and pork and support the food security of nations that may be short-supplied due to the Russia-Ukraine conflict.


Major Brazilian meatpackers like JBS and BRF are part of ABPA. Russia and Ukraine compete with Brazil to export meat to markets in Asia, the Middle East, and Europe.


ABPA said there are about 20 Brazilian plants currently suspended by the Europeans.


Alcides Torres, director at Scot Consultoria, said Ukraine's poultry exports totals about 430,000 tonnes annually, representing some 10% of what Brazil traded in 2021


Torres said Europe will consider lifting suspensions if they need meat from Brazil.


-      Reuters

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