Brazilian Pig Farmers Invest Massively Amid Increased Export Potential

RIO DE JANEIRO, BRAZIL – China‘s pig production crisis is providing opportunities for farmers and exporters in Brazil. Prices are rising, and so are investments.

The country’s pork exports increased by more than 24 percent in the first half of 2019 as compared to the same period last year. With the heated demand, producers and industries in Mato Grosso do Sul State began to focus on new investments.

Alessandro Boigues, president of the state pig farmers’ association, explains that the sum of investments that have already begun in the state and, also, of those planned up to 2022, comes to R$1 billion (US$250 million).

“We are going to have to end up speeding up investments. They [the Chinese] are having health issues with African swine fever, and this will certainly give Brazil visibility,” Boigues explains.

Cooperatives are also involved in the growth surge, with projects to increase the number of breeding stock and pig farmers motivated by the prospect of higher profits.

Such is the case of pig farmer João Alberto Zílio, who owns properties in São Gabriel do Oeste. He owns five facilities, all of which were financed in the amount of R$1.75 million. The producer is currently preparing to build the sixth one, with an investment of R$450,000.

Producer Eleisa Moraes says there is now plenty of good news for pig farming in Mato Grosso do Sul. Over the past twelve months, the price of a kilo of a live animal has risen from R$3.50 to R$4.60, an appreciation of 32 percent.

“It is a very significant increase. Although the price of corn is a little higher, we can afford this cost and still make a profit,” she says.

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