Brazilian Pork Prices Rise Due To Exports And Internal Demand
Brazilian pork producers have a reason to celebrate after a year of uncertainty. In the first month of the year, pig farmers have seen an increase in the price paid per animal, mostly due to the high internal demand and rise in exports, Diário do Comércio e Industria (DCI) has reported.
According to new research by the Center for Advanced Studies in Applied Economics (CEPEA), the price of the live animal exceeded the average of BRL 5 per kilogram (approximately €1.53), some reaching the mark of BRL 5.30 (around €1.62), a price not seen since 2014.
The rise in prices is directly connected to the crisis the sector experienced in 2016, when many farmers left the market due to high production costs and low demand. In addition, Brazilian producers of pork meat have benefited from the avian flu crisis in Asian-Pacific countries, which has positively impacted the demand for other types of meat.
The demand in the Brazilian market had also increased with the drop in prices last year.
However, specialists do not expect the prices to hold much longer than 60 days.
Brazilian Pork Meat Production
In 2016, Brazil produced 3.7 million tonnes of pork meat, 2.41% more than in 2015, according to the Brazilian Association of Animal Protein (ABPA). For 2017, the association expects a gain of up to 2%.
Preliminary information from ABPA also shows that January meat sales amounted to 54.5 thousand tonnes, a 39.3% volume increase compared to the same period in 2016.
In term of revenue, the country registered a 76.2% growth, with BRL 124.6 million billed in January 2017, against BRL 70.7 million in the same month last year.
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