Chilean and Brazilian exports to Russia increase
Following the Russian bans on EU, US & Canadian imports, Brazil and Chile are the main pork exporters which still have access to the Russian market. Latest figures show that, despite their exports falling overall, both have sent more pork to Russia in recent months. Export prices have also increased significantly.
Following the Russian bans on EU, US & Canadian imports, Brazil and Chile are the main pork exporters which still have access to the Russian market. Latest figures published by Chile Customs show that, at 66,200 tonnes, pork exports fell by 9% in the first seven months of this year, compared with the same period in 2013. This was a direct consequence of lower availability led by production shortages. For the period as a whole, Russia accounted for 14% of total exports, with a 1% year-on-year decline. However, even before the Russian ban was extended to the North American countries, the monthly figures for July recorded a more than doubling of pork exports to Russia, increasing from 1,400 tonnes in July 2013 to 3,200 tonnes this year. As such, the significance of the Russian market increased to 27% in July 2014. At the same time, the unit price of exports to Russia rose from just under US$3 per kg a year ago to nearly $5 this July.
Brazilian pork exports in the first eight months of this year totalled 270,800 tonnes, 7% down on the previous year. The Brazilian export price increased by 29% in the first eight months of this year, led by limited availability on the back of a reduced pig herd, combined with higher import requirement from Russia (up 18%). As such, Russia gained a stronger influence on the Brazilian export trade, accounting for 41% of total volumes, compared with just over a quarter in January to August 2012. By August, the year-on-year rise in export prices had reached 33% and shipments to Russia were over 50% more expensive. The full effect of the new Russian ban will become more apparent when September trade data are released in a month’s time. With the sharp increase in price, the value of Brazilian pork exports in the year to date rose by 20% to over R$2 billion.