September 15, 2014

With the current trade sanctions being exchanged between Russia and Western nations over the territorial crisis in Ukraine, Brazil's pork is considered as an alternative to Russian demand and shipments are expected to rise by 20% in 2015.

The figure represents an eight-year high of 696,000 tonnes.

In addition, beef shipments may reach an all-time high, fuelled by Moscow's need to maintain meat supplies which are disrupted by import bans on products from the EU and US.

Brazil's beef exports is anticipated to leap by 10.1%, at 2.24 million tonnes, topping the record 2.19 million tonnes set in 2007, and establishing the country's place as the world's top shipper, said a USDA source in Brasilia.

Due to the present political tension in Europe, Russia has been seeking for alternate meat sources of non-US / EU origins. More than a hundred Brazilian meat plants have been granted permission for export to the Federation with the development coming at a critical time when Brazil is facing a soft domestic market. 

Moreover, inflationary pressures and weak economic growth may plunge local beef consumption by 1.2%, and pork demand by 1.8%.

On a positive note, the expansion of the local feedlot industry may drive Brazil's beef output to reach 10 million tonnes by 2015, a first for the country. The local hog sector's boom may also see a continual run, propelled by international demand of which Russia is a major importer.

"Trade sources expect that Brazilian pork exports will occupy 35-40% of the Russian market," the USDA reported.

Brazil is currently the world's top beef exporter, shipping nearly twice as much as the US. The country also ranks fourth for pork exportations.