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Brazil - Livestock and Products Annual

by 5m Editor
7 September 2010, at 12:00am

Beef production is forecast to increase in 2011 by 3.5 per cent and exports by 8.0 per cent, while pork output and exports will rise by 3.0 and 2.5 per cent, respectively. These are the predictions of Joao Faustino in the latest GAIN report from USDA Foreign Agriculutrual Service.

Summary

The outlook for the Brazilian economy in 2011 calls for continued economic growth above five per cent, with lower inflation and a continued increase in consumer purchasing power.

Brazilian meat exporters are also optimistic about growth of the world economy in 2011 and expect Brazilian exports of beef and pork to increase in their major markets.

Post forecasts beef and pork production to increase around three per cent in 2011, supported by export growth and firm domestic demand for animal proteins.

Post revised production and export estimates for Brazilian beef and pork for 2010 to reflect new estimates made by trade sources. These estimates call for lower rates of growth for beef and pork production and exports than those previously estimated. In general, domestic demand for both meats is supporting the expansion in production this year.

Production

Post forecasts pork production to increase in 2011 at an average rate of nearly three per cent. FAS projections reflect current optimism of pork exporters for increasing exports during next year and assume that the worst of the global financial turmoil has past. However, traders remain cautious about the impact of the valuation of the Brazilian currency and access to credit for main importers, such as Russia.

On the other hand, hog producers currently enjoy stability in feed prices, mostly from corn. Post also forecasts an increase in domestic pork demand because pork prices are currently competitive with beef prices. The pork council also continues with a strong public campaign to increase consumption of pork in the domestic market.

Trade

Post forecasts pork exports to rebound by 2.4 per cent in 2011 as demand from major importers is expected to increase. Brazilian pork exporters are also strategically focused on in new markets in Asia, such as China, and have begun to advocate for access to the US and Mexican markets.

Brazilian pork exports in 2010 are expected to decline by over 10 per cent mostly due to reduced exports to major markets such as Russia and Hong Kong.

Further Reading

- You can view the full report by clicking here.

September 2010