Trade balance of meat industry in 2019 remains positive

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The Brazilian meat industry continues to enjoy an excellent opportunity, strengthening its commercial relationship with China. Notoriously, the Asian country is struggling with an outbreak of African swine fever (ASF). It is estimated that between 40% and 50% of the country’s swine herd were lost due to the disease. The supply gap formed requires a series of strategies to meet the world’s largest demand for meat, starting with a strong presence in the international market, absorbing increasingly important volumes of animal protein. In addition to Brazil, the United States and the European Union also benefit from this scenario.

The meat industry’s trade balance remains positive in 2019. However, the performance of chicken draws attention negatively, the performance in the second half is well below expectations, in case China continues to import good volumes, last September around 46.7 thousand tons of chicken were exported, the third largest volume of the year. This weakening performance has to do with reducing shipments to less traditional importers. South Africa also reduced shipments in 2019, which facilitates the understanding of this picture. In the whole year (from January through September) Brazil exported around 3.01 million tons of chicken, while in the same period last year the shipped volume was 2.99 million tons, in a modest advance of 0.6%. Revenue growth was more pronounced, of around 5.7%.