With increasing demand and diversification in the exports, the pig industry seeks to recover losses in 2019
The pig industry faced several obstacles in 2018: stagnant domestic consumption, decrease in exports and increase in the cost of feed. The decreasing demand and stable supply made the price of pork fall by 20% during the year.
“In order to combat the crisis, the sector has sought other markets and diversified its client portfolio,” said the Confederation of Agriculture and Livestock of Brazil (CNA). “In 2019, the recovery of the Brazilian economy brings the prospect of increased domestic consumption (…), prices in the medium term and some improvement in producers’ profit margins.”
According to the Centre for Advanced Studies in Applied Economics researchers, Esalq/USP, increases in exports and reduction in production costs are expected. In the case of exports, data from the United States Department of Agriculture (USDA) forecasts a growth by 7%.
The increase will be driven mainly by Asian countries, especially China and Hong Kong. According to the Brazilian Animal Protein Association (ABPA), together both countries accounted for 40% of the pork meat shipped in the first two months. On the other hand, the Russian market was the destination of 10.9% of the exports as it reopened in November after embargo, just ahead of Angola, with 8.1%.
“The strong increase in pork sales to Russia and other markets indicates an optimistic scenario in the sector’s exports. In the context of sales recovery, it is important to maintain the shipment flow in several markets to reduce the dependency around few destinations,” says Francisco Turra, president of ABPA.
USDA estimates that the Brazilian production should increase by 3% in 2019. For CNA, this does not mean that the sector will be in black but the increase in demand added to the expectation of a record harvest for maize, should recover the losses in recent years. Meat prices are expected to increase by 3%.
ANUTEC BRAZIL gathers the leading suppliers for pig farming
The pig farming industry foresees 2019 as a year for recovery, with a hike in both supply and demand. ANUTEC BRAZIL, International Supplier Fair for the Meat and Protein Industries, serves as the main business platform for this industry. The major players, such as Bettcher, Handtmann, Tecmaes, Multivac and Polyclip, among others, have already confirmed their presence at the next edition of the event, where they will present the latest technology in equipment for more than four thousand slaughterhouses from all over Brazil.
For further information about ANUTEC BRAZIL, go to www.anutecbrazil.com.br
26 to 28 de May 2020
Expo Trade Convention Center – Curitiba (PR)
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