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July 15, 2019

Brazilian Meat Exports surge in June thanks to Trade Dispute

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Brazil's meat exports surged during the month of June thanks in part to the trade dispute between China and the United States.

Brazil's poultry exports increased 64% in June compared to a year earlier according to the Brazilian Association of Animal Protein (ABPA). The export of all poultry products during June totaled 386,200 tons compared to 235,400 tons for a year earlier. The total value of June's poultry exports increased 76%. During the first half of 2019, Brazil's poultry exports increased 11.4%.

China is the principal destination for Brazilian poultry exports and they increased their imports 22.6% between January and June of 2019 totaling 257,900 tons. The United Arab Emeritus was second largest destination during the first half of 2019 with 192,000 tons or an increase of 35.7% followed by the European Union with 129,900 tons or an increase of 21%.

According to ABPA, Brazil's pork exports increased 81% during the month of June compared to June of 2018. Brazil exported 63,600 tons of pork during June and for the first half of 2019, Brazil's pork exports were up 24.5% to 278,300 tons.

The principal destination of Brazil's pork exports is China with 26.7% of the total. During the first half of 2019, China increasing their pork imports from Brazil by 30%. Russia also increased their imports of Brazilian pork during the first half of 2019 by 7.6%.

The state of Santa Catarina in southern Brazil is Brazil's leading producer of pork and poultry, so they have been the main beneficiary of the export surge. According to the Secretary of Agriculture in the State of Santa Catarina, the increased exports are no accident.

He feels the state is well positioned with quality meat products allowing them to compete in the international market. The state has worked very hard on animal health and they have been recognized by the World Animal Health Organization as being free from foot-and-mouth disease without vaccinations and the state is also free from classical swine fever.

Meat and egg exports accounting for 59% of the agricultural exports from the state of Santa Catarina. Other agricultural exports include grain, fruits, tobacco, and forestry products such as lumber, paper, furniture, and cellulose.