Main destination of Brazilian protein was China, up 91.3% year over year
06/15/2022
Driven by China and with significant increases in average prices, the country’s exports of beef and chicken grew in May and saw volume and revenue increase in the first months of the year.
The highlight continues to be beef, which faces lower consumption in the domestic market. The exports of this protein (fresh and processed) reached 176,000 tonnes and yielded $1.08 billion in May, according to data from the Secretariat of Foreign Trade (Secex) compiled by the Brazilian Beef Exporters Association (Abiec). Compared to the same month last year, volume grew 17.5% and revenue was 49.5% higher.
In the first five months of 2022, according to the association, the exported volume reached 887,300 tonnes, 25% more than in the same period of 2021, and revenue grew 55.9%, to $5.06 billion. The average sales price increased 24.7%, to $5,700 per tonne.
“This shows that Brazilian beef is being increasingly valued in the international market and that Brazil is consolidating itself as an important trading partner for the buying countries,” said Abiec’s head Antônio Jorge Camardelli in a note.
From January to May, the main destination of protein shipments was China ($2.9 billion, up 91.3% year-on-year), despite temporary embargoes imposed by Beijing to some Brazilian slaughterhouses because of the country’s Covid-zero approach.
Next comes the U.S. ($471 million, up 88% YOY), Egypt ($255.8 million, up 345% YOY) and the European Union ($212.8 million, up 29.4% YOY).
The exporters of chicken shipped 429,600 tonnes of protein last month, a volume 3.7% higher than in May 2021, the Brazilian Animal Protein Association (ABPA) reported Wednesday. The revenue from foreign sales grew 37.8%, to $904 million.
“The global inflationary framework, with rising production costs and strong demand for chicken in the foreign market, strengthened the average international prices, [which reached] levels above $2,000 per tonne,” said ABPA’s head Ricardo Santin in a statement. According to the executive, the exports performance in May helps to offset the impacts of the increase in the cost of inputs used in production (basically corn and soybean meal).
China was the main destination of Brazilian exports, even with the 8.8% drop in volume last month, to 50,200 tonnes. It was followed by the United Arab Emirates, Japan and the European Union, with shipments of 44,800 tonnes (+73.2%), 33,100 tonnes (+3.2%) and 26,300 tonnes (+80.7%), respectively.
From January to May, exports totaled 1.9 million tonnes, or 7.8% more than the same period in 2021. The revenue increased 33.6%, to $3.8 billion.
*By Fernando Lopes, Érica Polo — São Paulo
Vaslor International