BRAZIL - The price recovery seen in Brazil since the beginning of September has strengthened and firmed since my last report. In some regions of Brazil, the price has actually broken the barrier of R$ 4.00 per kg live weight, the first time this has happened. This is equivalent to US$ 1.83 per kg live weight, writes Martin Riordan from Genesus Brazil.
With production costs varying around US$ 1.30-1.40, finally producers are receiving a decent margin.
On the international scene, September was not a good month. Exports fell in terms of both volume and value. Brazil exported 45,996 metric tons of pork products in September, an impressive reduction of 24 per cent in volume and 21.6 per cent in value compared to September 2012.
The president of ABIPECS (association of pork exporting plants) explains this reduction as a reaction to less supply, stronger domestic demand bring higher prices and logistics problems at the ports during a week in September. Logistics problems in ports are a traditional problem for all export industries in Brazil, which no government has yet taken effective measures to resolve.
Total exports in 2013, at 389,289 tons, are more than 9 per cent down on the same figure for 2012, making it unlikely that the target of 600,000 tons will be achieved this year.
Russia continues as the most important destination for pork exports, taking 27 per cent of the total in 2013. However, it is a fickle and unreliable market, as non-commercial decisions can affect export possibilities at any moment.
Hong Kong comes in a close second place, taking 23.4 per cent of total exports, followed by Ukraine with 14.2 per cent.
Figures from ABIPECS show that the south of Brazil is the region that most exports pork products. The state of Santa Catarina has been responsible for 33.8 per cent of exports in 2013, closely followed by the neighbouring state of Rio Grande do Sul with 31.6 per cent. The third state in this region, Paraná, contributed 7.9 per cent, making a total of 73.3 per cent from the region. The states of Goiás (13.6 per cent) in the Center-West region and Minas Gerais (8.8 per cent) in the South-East, are the only other states with expressive exports.
So it seems probable that surviving producers will have a happier end-of-year that those of recent years. Although I am no longer an active producer, it leaves me contented to know that finally the professional hard work of producers is being rewarded. Long may it last! (But I’m not going back…)
|Genesus Global Market Report|
Prices for the week of October 21, 2013
(Liveweight a lb)
|USA (Iowa-Minnesota)||85.41 USD/lb carcass||63.20¢|
|Canada (Ontario)||171.35 CAD/kg carcass||59.48¢|
|Mexico (DF)||23.5 MXN/kg liveweight||82.80¢|
|Brazil (South Region)||3.89 BRL/kg liveweight||80.57¢|
|Russia||77 RUB/kg liveweight||$1.09|
|China||15.73 RMB/kg liveweight||$1.17|
|Spain||1.368 EUR/kg liveweight||85.50¢|
|Viet Nam||45,000 VND/kg liveweight||96.83¢|
|South Korea||3,146 KRW/kg liveweight||$1.35|
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