Trade balance of meat for the first two months shows surplus

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The trade balance of the meat industry in the first two months of 2020 was quite positive. Despite all logistical bottlenecks in China, the Asian country remains as the country’s major business partner. The Brazilian dependence has deepened in recent months. As previously discussed, the picture of protein deficit in China is expected to last for a while in 2020, requiring an active stance in terms of animal protein imports.

With the epidemic about to be controlled in China, the Asian country is likely to return to normality, eliminating the logistical restrictions imposed since the Lunar New Year holiday. This is one of the few positive pieces of news in a year marked by pessimism and uncertainties. However, this premise does not apply to other relevant importers of Brazilian animal protein. The situation of the European Union is a clear example, already with relevant logistical bottlenecks. The scenario described for the second quarter is highly unpredictable, also depending on possible logistical restrictions within the Brazilian territory.

In the first two months of the year, the highlight was on pork exports, whose performance was exceptional. Chicken also showed a satisfactory result, while beef presented a performance similar to that of the first two months of 2019. In the first two months, Brazil exported around 133 thousand tons of pork, against 100 thousand tons in the same period of 2019, which represents a growth above 30%. In terms of revenue, the growth is even more significant at around 67.4%. China still occupies a share of Brazilian exports of roughly 46%.

Chicken performance was also satisfactory. In the first two months, Brazil exported around 660 thousand tons, against around 584 thousand tons in the same period last year, an important jump of 13%. Revenues grew 11% in the comparison. Exports of chicken continue to be the most dispersed in the meat industry, with China occupying a market share of ‘only’ 17.5%.

For beef the numbers are more timid, something natural after China bought an impressive volume last quarter. Moreover, after a process of inflation in the prices of this protein, the Asian country seeks to diversify its suppliers, accrediting more countries. Brazil exported around 386.8 thousand tons, up 1.5% from the first two months last year. China remains as a major importer of Brazil beef, with a market share of approximately 34.5%.