Performance of Brazilian exports of animal protein is very positive in 2022

Brazilian animal protein exports show excellent performance in 2022. Even pork shipments, which were stable during the first half of the year, reacted over the year, finding room for more consistent advances in terms of revenue and volume. For other proteins, the maintenance of global leadership in shipments is more than guaranteed. However, some comments regarding beef need to be pointed out.

The most important aspect at the moment is the broad process of devaluation of the yuan, which reduced the ability of Chinese importers to operate in the market. In this environment, Chinese importers began a broad process of renegotiating contracts, lowering beef prices in the international market. This is one of the main reasons for the price decline in the last quarter, making the industry account less interesting.

However, from January to September, the performance is spectacular. So far, Brazil has exported around 2.5 mln tons in carcass equivalent, up 15.5% from the same period last year, when around 2.19 mln tons were shipped. In terms of volume, this is the last month in which it will be possible to make a comparison with 2021, as the embargo imposed by China sharply reduced the pace of exports last year.

In terms of revenue, Brazil has collected more than 10 bln dollars in beef sales in the international market. In the same period last year, the collection was 7.36 bln dollars, 36% higher. This was an important symptom for beef prices in the international market during the first half of the year. The process of currency devaluation in China altered these dynamics, resulting in a sharp decline in average beef sales prices in the international market.

For pork, the picture is improving, with China resuming good volumes of purchases from Brazil. On the other hand, it is important to mention the sales advances in other markets, such as Singapore, Vietnam, the Philippines, and Argentina. From January to September, Brazil exported around 807,000 tons of pork, down 5% from the same period last year, when the country had shipped around 850,000 tons of pork.

In terms of revenue, the performance in the second half of the year is satisfactory, with advances in the average price of pork in the international market. The rise in prices in China plays an important role in this scenario. From January to September, Brazil collected around 1.83 bln dollars. In the same period last year, the collection was 2 bln dollars.

Chicken stands as one of the great highlights. Brazil is heading toward a new chicken export record. This is true for both volume and revenue. From January to September, Brazil shipped around 3.5 mln tons of chicken. In the same period last year, Brazil exported around 3.36 mln tons.

In terms of revenue, the country collected around 7.2 bln dollars, up 31% from the same period last year (5.5 bln dollars). In other words, this is another interesting indicator, pointing to the increase in the average price of chicken in the international market. Brazil remains in a prominent position, given the advances in Avian Influenza in the Northern Hemisphere, besides the conflict between Russia and Ukraine, which removed Ukrainian chicken from the international market.

The performance of chicken and even pork exports tends to remain positive until the end of the year. As for beef, the outlook is less promising due to the fall in international protein prices. Domestic demand is approaching its peak, which will be a fundamental factor for the industry’s revenue formation at the end of the year.

Tags: Beef, International market, shipments, animal protein, China, exports, pork, Brazil, prices