Brazil continues to increase exports to Russia
Total pork exports from Brazil were 21,250 tonnes (5%) lower in 2014 than 2013. However, the end of the year has seen no let-up in the momentum of Brazilian pork exports destined for Russia, as they fill the gap left by banned EU and Canadian product.
Total pork exports from Brazil were 21,250 tonnes (5%) lower in 2014 than 2013. However, the end of the year has seen no let-up in the momentum of Brazilian pork exports destined for Russia, as they adeptly fill the market space left by banned EU and Canadian product. Latest figures show that almost 186,000 tonnes of pork were exported to Russia in 2014, over 40% of total Brazilian exports. This is 51,500 tonnes (38%) more than in 2013 and has been shaped by the second half of the year, with 23,000 tonnes more delivered in the final quarter of 2014 than the first. It took over half of shipments in October-December 2014, despite prices having nearly doubled in rouble terms compared with a year earlier. Such growth has been possible to some extent due to the redirection of pork previously destined for Ukraine prior to the ban initiated during 2013.
Other key export destinations remained strong, with increasing shipments to Angola and Singapore among others. Trade with Hong Kong, Brazil’s second largest market, did diminish slightly over the course of 2014, but Brazil did build up some smaller markets in Asia, such as the Philippines, Thailand and Japan. With the Brazilian Real continuing to weaken and with global supplies tight due to PEDv, pork unit prices were consistently up on the year. Accordingly, the value of Brazil’s pork exports in 2014 totalled R$3.4 billion, almost 28% more than 2013, despite the decrease in total volume. Challenges remain in accessing new markets, in the form of meeting welfare standards and avoiding disease threats. However, the strength of demand from Russia is likely to mean that it will remain the dominant buyer of Brazilian pork until well into 2015.