Exports of pork from Brazil fell by 5% in the first nine months of 2008 compared with a year earlier.
Russia remained the largest market, accounting for 48% of total trade although shipments fell by 9% to 181,000 tonnes. In contrast, there was marginal rise in exports to Hong Kong and Ukraine, the two other largest markets for Brazil. The value of exports (expressed in US dollars) increased by as much as 36% as the average export price rose by 44%, helped by strong demand from the world market. Virtually all Brazilian exports were in frozen form.
Brazilian pig producers suffered financial losses in the first half of 2008 but the rise in profitability has since been dramatic as feed costs fell and pig prices increased. In line with world developments, feed ingredient prices have fallen by up to 50% since reaching a peak in June. Pig prices have moved up steadily during the course of 2008 and by September profitability was at its highest for some years. The increased pig price was as a result of lower supplies of slaughter pigs and stable demand. However, in October demand fell and so did pig prices.