China a paramount destination of Brazilian animal protein

The Brazilian Association of Animal Protein (ABPA) is delighted with its relationship with China in the wake of the country’s struggles with African swine fever (ASF).

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(cbies | Shutterstock.com)
(cbies | Shutterstock.com)

The Brazilian Association of Animal Protein (ABPA) is delighted with its relationship with China in the wake of the country’s struggles with African swine fever (ASF). Minister of Agriculture, Livestock and Supply, Tereza Cristina, just announced that new processing plants were authorized for chicken and pig meat exports for China.

The five new pork producing and exporting plants and the three poultry units will further expand China's importance to Brazil’s animal protein exports, according to Francisco Turra, president of ABPA. In this way, Brazil will have 16 authorized plants to export pork and 46 plants for chicken meat shipments.

“Before the BRICS meeting, the news of the new authorizations sets the tone of the collaboration that China and Brazil build for food security and the expansion of trade,” said Turra. He also stressed that Brazil “already consolidated as the main external supplier of chicken to China, now must expand its participation, also in pork sales.”

Destination: China

In total, 31.4% of pork and 13.3% of chicken meat exported by Brazil in 2019 were shipped to China. Year to date, China has already taken the lead among the main destinations of poultry and pork exports in Brazil.

Between January and October, the Chinese imported 183,100 metric tons (MT) of pork (+40% compared to the same period last year), generating revenues of US$429.8 million (+66%). Of chicken meat, there were 444,700 MT (+22%), resulting in revenues of US$931.7 million (+38%).

“Sales to Asia continue to boost pork exports, with an increase in October of 81% in shipments to China and 19% to Hong Kong,” said Turra.

Exports in figures

In general, export revenue of chicken meat (which includes all products, both fresh and processed) continues to increase in 2019. Between January and October, they reached a total of US$5.7 billion, a figure 4.3% higher than that registered in the same period of 2018, at US$5.46 billion. A total of 3.41 million tons were exported, volume 0.3% lower compared to the previous year, with 3.42 million tons.

Only in October, export revenues totaled US$536.5 million, 7.1% lower than in the same period of 2018, with US$577.8 million. A total of 334,000 MT were exported, a volume 8.8% lower than the 366,100 MT shipped in the tenth month of 2018.

“Sales of chicken meat were better in October of this year, whit an average price 1.8% higher than the one registered the previous year. At the same time, the health status in Asia continues to generate effects on exports, with a 39% increase in exports to China,” said Ricardo Santin, executive director of ABPA.

On the other hand, Brazilian pork exports (which includes all products, both fresh and processed) reached foreign exchange earnings of US$149.6 million in October. This figure is the highest monthly balance recorded in the last 24 months, and exceeds by 38.4%, the performance recorded in the same period last year, with US$108.1 million.

In the YTD figure, pork exports registered a 23% increase in foreign exchange revenue of the sector, to reach US$1.23 billion, compared to the US$1 billion in the same period of 2018.

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