The world is full of trade rules, barriers and borders that are more than mere geopolitical lines between countries. Some are for health reasons; others are for political reasons, and maybe some are for economic reasons. But as Ricardo Santin, president of the Brazilian Association of Animal Protein (ABPA), wrapped-up at a press conference on chicken and pork markets in Brazil and abroad at this past SIAVS in São Paulo, Brazil, “there should be no borders for food.”
Evidently, Brazil is looking to guarantee its animal protein exports. Yes, it is a business, but we are talking about food security and, as ABPA states, complementing production of other countries.
One of the characteristics of the Brazilian poultry industry is its versatility. Whether shawarma for the Middle East, kakugiri for Japan, chicken feet for China or chicken breast for Mexico or Europe, products are focused to consumer convenience and consumption at home, such as individual servings, ready-to-eat or others.
In 2023, 34.6% of chicken meat produced in Brazil was exported, that is 5,139 million metric tons (MT), mostly destined for China, UAE, Japan, Saudi Arabia and South Africa. Mexico ranked No.10 in the top 10 of export recipients. Brazil expects a 2.2% increase in exports in 2024 and a 1.9% increase in 2025. Meanwhile, chicken meat exports from the U.S. are steady and EU’s declining.
We all know that China, Mexico, Argentina and Macedonia halted imports after the only Newcastle disease outbreak. Argentina and China are back on track, but Mexico isn’t. Which of the aforementioned barriers apply to this? Meanwhile, Brazil is working on opening up other markets, which might seem small, but get a foot in the door of some regions. Such is the case for El Salvador last April and Panama last week.
Santin gave a good comparison of population growth in countries and big cities. He also compared new consumers in the coming years and one thing is for sure: India and China concentrate the vast majority of this. But within consumption of animal protein, as per the Rabobank data he presented, emerging markets will account for 90% of protein consumption growth. That is, 50% of growth will be in Asia, while 20% will be in Latin America (mainly Brazil, Mexico, Colombia, Peru and Argentina).
While high-income countries will consume based on trendy things such as emotional and individual needs, organic or vegetarian, the rest of the world will be looking for food security, food safety and added value.
What do you think?
