Brazil’s 2014 pork/pork variety meat exports were down 4 percent in volume from a year ago to 487,956 metric tons (mt), but still set a new value record of $1.58 billion – up 17 percent. This performance was driven in part by higher per-unit values for Russia (up 42 percent) as Brazil became Russia’s primary pork supplier and was able to command significantly higher prices – at least until the ruble crashed. Russia took 38 percent of Brazil’s export volume (186,503 mt, +38 percent), while export value to Russia nearly doubled ($810.2 million, +97 percent).
Exports to No. 2 market Hong Kong were lower (110,466 mt, -8 percent) but still comprised 23 percent of Brazil’s export volume. Exports increased to Angola (52,283 mt, +4 percent) and Singapore (32,288 mt, +12 percent). Lack of volume growth in Brazil’s exports reflects relatively flat production in 2014, along with strong domestic demand. Modest production growth is expected this year, but economic uncertainty in Brazil raises concerns about whether domestic pork demand will continue to grow.
Brazil’s 2014 beef/ beef variety meat exports also set a new value record of $6.87 billion, up 8 percent year-over-year. While export volume (1.48 million mt, +4 percent) did not set a new record, it was the largest since the peak year of 2007.
Export growth was driven by larger volumes for most major destinations including Hong Kong (349,275 mt, +13 percent), Russia (313,193 mt, +3 percent), Venezuela (170,241 mt, +8 percent), Egypt (164,553 mt, +14 percent) and Iran (61,178 mt, +4 percent). Exports to Chile (55,210 mt, -28 percent) were sharply lower as Paraguay regained market share in Chile.
Brazil’s cattle prices set records (in Brazilian real terms) late in the year, reflecting relatively tight supplies. Production was projected to increase modestly last year and relatively moderate growth is anticipated again in 2015. However, Brazilian processors are concerned about demand in their domestic market as GDP growth is expected to be less than 1 percent this year. Many of Brazil’s primary export markets’ economies are also being hit by lower oil prices and weaker currencies.
Data source: Global Trade Atlas