April 29, 2009

Brazil pork exports should remain steady this year despite the global outbreak of swine flu, according to the president of Brazil's Pork Industry Association or Abipecs.

"Swine flu shouldn't impact pork exports and we'll keep our expectations for exports at around 530,000 tonnes of pork" in 2009, Pedro de Camargo Neto told Dow Jones Newswires Tuesday.

Brazil exported 529,000 tonnes of pork in 2008, with Russia being the No.1 importer accounting for around half.

Camargo said that the current financial crisis is a bigger challenge. But if the swine flu continues for a prolonged period, worsens or reaches Brazil, Brazil's pork exports and domestic consumption could slide, according to the executive.

Camargo added, however, that countries so far haven't raised import barriers against pork exports from Brazil. "There isn't a reason to do this (raise barriers), but the situation can become very emotional and change," he said.

It is also too early to know how swine flu will affect Brazil's plans to export to new markets, he said.

Abipecs earlier this year said it aims to start pork exports to markets such as China and Japan to help offset falls in exports to countries such as Russia.

Brazil had hoped to use Brazilian President Luiz Inacio Lula da Silva's visit in May to China to lobby for exports of pork to the giant Asian country.

Camargo also wants to play down the likelihood of gains by Brazilian pork exporters on the back of the swine flu. Analysts said that Brazil could make up for fewer exports of pork from the US to markets such as Russia that might shut their doors to shipments of meat from countries impacted by the flu outbreak.

Still, Brazilian pork exporters such as Aurora, Mabella and Unibon could benefit in some cases. Camargo recalled that during the outbreak of bird flu, Brazil remained without any cases of the illness. As a result, Brazilian chicken exports rose during the period, he said.

Abipecs is also lobbying the World Health Organization, or WHO, about the use of the term swine flu. The term swine flu has been wrongly used according to Abipecs.

"Swine flu really has nothing to do with pigs," he said.

Brazil is one of the world's largest pork exporters.