Oct 15, 2014

Russia Accounts for 40% of Brazil's Pork Exports in September

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Russia continues to increase their import of Brazilian meat products to fill the void left when they banned many meat products from the European Union and the United States. During the month of September Russia accounted for nearly 40% of Brazil's total pork exports.

According to the executive director of Brazil's Animal Protein Association (ABPA), Francisco Turra, during the month of September, Russia imported 17,065 tons of Brazilian pork (+76% compared to September 2013) and he expects the volume to increase even more in October. The demand from Russia has been so strong that Brazil had to cut back shipments to some other countries in order to supply the Russian market.

During the first nine months of 2014, Russia has imported 130,000 tons of Brazilian pork or 24% more than the same period last year. The total Brazilian pork exports thus far in 2014 has not been as positive at 362,000 tons or 7% less than last year.

The five principal importers of Brazilian pork are Russia (35% of the total), Hong Kong (23%), Angola (11%), Singapore (7%), and Uruguay (4%). Argentina used to be one of the five biggest importers of Brazilian pork until the Kirchner administration imposed restrictions on the importation of many products from Brazil. After the import restrictions were imposed, poultry exports to Argentina for example fell sharply and thus far in 2014, they are down 44% year-on-year.

Brazil's poultry exports were also very good during September. During the month, Brazil exported 359,000 tons of poultry which was the second highest monthly volume in two and a half years. The total represented an 8% increase over August and a 19% increase over September of 2013. The volume of poultry exported from Brazil over the last twelve months is up 3.5%. If this monthly export volume is maintained until the end of 2014, Brazil's total poultry exports for the year should surpass 4 million tons.