Russia now the key export market for Brazil
Latest figures show an 18% year-on-year decline in Brazilian pork exports in the third quarter of 2014. However, Russia's significance to Brazilian exporters increased, taking nearly half of shipments in September. Prices have also risen sharply.
Latest figures published for the third quarter of 2014 show an 18% decline in Brazilian pork exports compared with the same period in 2013. This was mainly due to the collapse of the Ukrainian market, which took around 23% of all exports last year. In addition to that, there was a 22% decline in shipments to Hong Kong, which is Brazil’s second largest market. However, the decline was somewhat offset by a strengthening position for the Russian market. This was mostly evident in September, as exports to Russia rose by 77% year on year. Last September, Russia accounted for 24% of Brazilian pork exports but, with EU, US & Canadian pork excluded from Russia since August, the significance of the Russian market to Brazil exporters increased, taking its share to nearly half. As such, Russia has become the key destination for pork exports, as Brazil is the only major global exporter which still has access to its market.
Alongside the rise of trade with Russia, the other notable development has been the sharp increase in export prices for Brazilian pork. Prices were already strong due to the tight global supply situation caused by PEDv outbreaks in North America and Asia. The Russian ban has pushed unit prices higher still; by September unit prices were up 43% on a year earlier in real terms, at R$9.29 per kg. Prices of shipments to Russia had risen even more quickly, reaching R$12 per kg in September. As a result, the value of Brazilian exports during the quarter totalled R$911.0 million, up by 13% compared with the third quarter in 2013, despite the drop in volumes.