Brazil pork trade pivots back to RussiaChristian Fernsby ▼ | April 26, 2019
Brazilian exports of pig meat in the first quarter of 2019 were much the same as 2018 levels, totalling 160,000 tonnes, AHDB said.
LatAm Brazil pork
In the first quarter, total pig meat exports to China declined by 18% (-7,300 tonnes).
Similarly, exports to Hong Kong also declined, by 11,000 tonnes (-33%).
In the same period, exports to Russia increased by over 17,000 tonnes.
Exports to Chile, Vietnam and the US have also increased fairly significantly over the first quarter.
It is thought that the change in volumes between countries in the quarter is down to the Russian ban that came into effect last year.
Export companies quickly had to find alternative markets, and volumes to those markets have changed again this year as the ban has been lifted.
Growth in exports to China has not continued in the first quarter, despite markedly increased import demand through on-going problems with African Swine Fever.
Brazilian production is forecast to increase in 2019 and so it is possible that exports to China may pick back up, especially if exports to Russia stabilise.
However, at the moment it would seem that exporters in Brazil favour the Russian market, which could further shorten the supply/demand balance in Asia in 2019. ■