Brazil's Q1 pork exports total 109,700 tons, down 8% from year-ago period, CEPEA says
April 22, 2014
– Among Brazilian cattle activities, the calf producing system has been presenting the lowest financial risk over the last years. According to data from Cepea, calf producers’ profits (difference between revenue and production costs) oscillate less compared to profits of producers in other systems. Data from the beginning of 2012 to February 2014 indicate that the profitability of calf producers register an average coefficient of variation of 10.3%. Meanwhile, the profitability of farmers that operate in the complete system and farmers who buy calves and lean cattle registers a coefficient of 12.5% and 18.3%, respectively – the lower the coefficient of variation, the lower is the risk.
Moreover, calf quotes have been increasing more compared to fed cattle values. In one year (from April, 15, 2013 to April, 15, 2014), the ESALQ/BM&F Calf Price Index (Mato Grosso do Sul State, nelore animal, 8-12 months-old) upped significantly 31.5%, while the ESALQ/BM&FBovespa Index (São Paulo State) of fed cattle rose 23.6%.
In the first fortnight of April, calf is the only product of the chain to accumulate increase, of 3% (Index – Mato Grosso do Sul). In the fed cattle market, the Index in SP has decreased 1.7% in the first fortnight of April. In the same period, beef carcass traded in the wholesale market of the Greater São Paulo has downed 1.2%.
In the swine market, Brazilian exports of pork remain below that registered one year ago. In the first quarter of 2014, 109.7 thousand tons of the product (in natura, industrialized and ground) were sent to all destinations, 8% less compared to the volume in the same period of 2013, according to Secex. To Ukraine, only 1.7 thousand tons were shipped, which represents roughly 7% of the total exported in the first quarter of 2012 and 2013 (25 thousand and 23.5 thousand tons, respectively).
In 2012, Ukraine was the major Brazilian pork importer and, in 2013, the third most important, with 138.7 thousand and 68.2 thousand tons purchased, respectively. This country had been reducing the pace of purchases since the beginning of 2014 and, in March, did not close any trades. Recently, Ukraine has been facing political crisis.
Despite shipments decrease to Ukraine, Brazilian pork exports increased to Angola, Hong Kong, Singapore and Russia. Sales to Angola can be highlighted, given that it changed from 9.4 thousand to 13 thousand tons, a significant increase of 38.6%.
Concerning poultry, Brazilian agents are focused on possible effects of Bird Flu in Asia, especially in China and Japan. Likewise occurred in Mexico in 2013, the sacrifice of many animals would tend to increase the need to import broiler, including the Brazilian.
It is still early to relate numbers to the Asian crisis, but the fact is that, in the first quarter of 2014, China imported 1.9 thousand tons of in natura broiler from Brazil more than in the same period last year, totaling 49.8 thousand tons, according to data from Secex. Japan is also increasing purchases, but, considering the total in the first quarter (88.5 thousand tons), the volume is still 7.2 thousand tons smaller compared to that traded in the same period last year. (Cepea – Brazil)