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Bethan Wilkins

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AHDB Pork Market Intelligence

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Brazilian export prices rising fast

Home \ Prices & Stats \ News \ 2014 \ July \ Brazilian export prices rising fast

In the first half of 2014, Brazil exported just over 200,000 tonnes of pork, almost the same as a year earlier. However, the shortage of pork on several key markets meant that prices rose rapidly.

In the first half of 2014, Brazil exported just over 200,000 tonnes of pork, almost the same as a year earlier. However, the shortage of pork on several key markets meant that prices rose rapidly. Over the six month period, the value of exports was up by more than a quarter, at R$1.46 billion. To some extent this was down to the depreciation of the Brazilian real, which meant that prices were already 17% higher than a year before in January, at R$6.60 per kg, despite being almost unchanged in US dollar terms. However, prices then accelerated and by June they had reached R$9.03 per kg, 61% up on the year.

Brazilian export prices rising fast

In part, the price rises were driven by demand from Russia, Brazil’s leading export market, given supply shortages there following the ban on EU pork imports (and the ongoing restrictions on US product). Brazil supplied 21% more pork to Russia than last year and unit prices were up by more than half across the quarter and nearly doubled in June. Some smaller markets, such as Angola, Singapore and Albania also took more Brazilian pork. However, these rises were offset by a fall in shipments to Hong Kong and, more significantly, a collapse in trade with Ukraine. Various restrictions meant that this trade fell from over 64,000 tonnes in the first half of 2012, to less than 3,000 tonnes this year.