Brazil’s chicken exports in May up 3.4% over last year, helping offset costs – ABPA

RIO DE JANEIRO, BRAZIL – Total exports of chicken meat from Brazil (fresh and processed) reached 414,300 tons in May, up 3.7% compared to the same period in 2020, said ABPA industry association on Wednesday, June 9, stressing that foreign sales help offset higher production costs.

Foreign sales revenue from chicken shipments in May reached US$656.3 million, a performance 20.1% higher than the same month last year.

“The strong pace of chicken meat sales to the international market has been helping balance the pressure generated by production costs to companies that have access to exports, which represent around 70% of plants under federal inspection,” said in a statement the ABPA’s president Ricardo Santin.

He added that foreign demand is strong and the Brazilian product has remained competitive, “albeit being supplied by expensive grains” in reference to the raw material used in feed that has been pressuring the sector’s margins.

Currently, the Brazilian poultry and pork industry has been looking for corn in neighboring countries, such as Argentina and Paraguay, as an alternative to tackle the grain’s internal shortage and high prices. Large sector exporters such as JBS and BRF are among the raw material importers.

Also according to ABPA, the accumulated exports of chicken protein in the first five months of the year reached 1.846 million tons, up 4.6% compared to the same period last year. In revenue, the accumulated high stands at 4.8%, to US$2.826 billion.

Among the main markets buyers of meat in the year, the Philippines stood out, with 61,900 tons (+65.3%), Russia, with 42,800 tons (+33.6%), the United Kingdom, with 41,700 tons (+41.4%) and Chile with 39,700 tons (+152.9%), the data showed.

Pork

Brazilian pork exports, including fresh and processed pork, totaled 102,000 metric tons in May, a slight decrease of 0.3% year-on-year, the association said. The revenue generated by sales in May reached US$253.2 million, 11.1% higher in relation to the fifth month of 2020.

Between January and May, foreign sales of Brazilian pork reached 453,900 tons, an 18.44% increase year-on-year. The accumulated revenue reached US$1.079 billion, an increase of 22.9%.

Among the protein’s main importers in the year, China stood out, with 238,700 tons (+29%); Chile, with 25,500 tons (+94%); Uruguay, with 17,500 tons (+12.2%); Argentina, with 12,200 tons (+63.4%); and Vietnam, with 9,400 tons (+27.4%).

“The Asian markets continue as the main trend indicators for pork sales from Brazil,” said Luís Rua, ABPA’s markets director. “We have observed, however, a significant rise in the presence of South American importing nations among the top ten importers, which is highly positive for the industry, especially from a logistical perspective,” he added.