Despite COVID-19, Brazil exports more animal protein

Brazilian chicken and pork producers must be delighted. According to the Brazilian Association of Animal Protein (ABPA), chicken meat exports (of all products, fresh and processed) totaled 384,400 metric tons (MT) this past February, a 10% improvement when compared to the same month last year.

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ABPA leaders Francisco Turra and Ricardo Santin agree on the positive momentum that Brazilian animal protein exports have. (Benjamin Ruiz)
ABPA leaders Francisco Turra and Ricardo Santin agree on the positive momentum that Brazilian animal protein exports have. (Benjamin Ruiz)

Brazilian chicken and pork producers must be delighted. According to the Brazilian Association of Animal Protein (ABPA), chicken meat exports (of all products, fresh and processed) totaled 384,400 metric tons (MT) this past February, a 10% improvement when compared to the same month last year.

When adding the data of this first two-month period of 2020, the volume shipped reached 672,200 MT of chicken, which is 12.3% higher compared to that achieved in the first two months of 2019, which was 598,400 MT.

According to the Industria Avícola database, Brazil is still the main chicken producer in Latin America. In addition, together with the United States, it is one of the countries that exports the most poultry products in the world.

Meanwhile, pork exports -- which, like their chicken counterparts include all products, fresh and processed -- reached a total of 67,400 MT in the same month, a record amount for the month, and 24.7% of the volume shipped in the same period of 2019.

In the cumulative, pork exports reached 135,900 MT. This amount represents a 32.4% higher volume compared to that achieved in the first two months of 2019, which at that time was of 102,600 MT.

More foreign exchange earnings

Exports of these two animal proteins leads to increases in income for producers. For example, those of chicken during February generated revenues of US$553.8 million, a result 5.2% higher compared to the same period of 2019. In the two-month period, the increase was of 10.5%, with US$ 1.08 billion, against US$980.4 million in 2019.

Concerning pork, revenues were of US$154.9 million, that is, 54.6% higher compared to the result obtained in the second month of 2019. Bimonthly sales generated revenues of US$319.1 million, a balance 66.2% higher than the one recorded in the first two months of 2019, with US$192 million.

China: main destination

With 17.5% of total Brazilian chicken exports in this first two months of 2020, China is becoming one of the main destinations for Brazilian producers. Between January and February, China imported 115,400 MT, a volume 59% higher than that achieved in the same period of 2019.

As for pork, China is also the main export destination. There was a 161% increase in purchases compared to the same period last year, with a total of 31,000 MT exported in February.

“As with pork exports, the extension of the Chinese New Year and the logistical issues generated with the coronavirus restrictions did not reduce the Chinese demand for chicken meat from Brazil. On the contrary, there was an unusual momentum for the period. The impacts of African swine fever continue to dictate this market’s behavior, as well as of other Asian countries,” said Francisco Turra, president of ABPA.

Turra also noted that "the Chinese government gives priority to food trade."

Ricardo Santin, ABPA's CEO also said that “the average price of exports remains high, pressured by the strong Asian demand for animal protein. The impacts of the events of African swine fever in the herd, in markets such as China and Vietnam, kept the flow of shipments high, at atypical levels for the period.”

Asian context

In the rest of the Asian countries, South Korea was the destination of 17,500 thousand MT of chicken in this first two months of 2020. This figure exceeds sales of the first two months of last year by 12.5%. In addition, the Philippines increased its purchases by 104%, with 14,700 MT, while Singapore increased its purchases by 49%, with 18,300 MT between January and February.

“Asia was consolidated as the main destination of chicken meat imports from Brazil. This is a favorable fact, especially when the average price in sales to this region of the globe is higher than the general exports average,” said Santin.

On the other hand, Japan also increased its pork purchases from Brazil, with a total of 678 MT in February, a figure 239% higher than what was shipped in February 2019.

The same in other countries

In the same period of comparison, the European Union increased its purchases of chicken meat by 14%, with a total of 40,200 MT. Among the Islamic countries, the main one was Libya, with a 370% increase in imports, with 16,300 MT of chicken.

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