Meat trade balance is very positive in 2020

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The trade balance of the meat industry remains very positive in 2020. Chinese performance continues to be a major highlight for all proteins of animal origin. The month of June confirmed expectations for beef and pork but not for chicken. The fall in Saudi imports in 2020 may be indicated as responsible for this movement. It is important to point out that other competitors still suffer from problems in their agribusiness caused by the pandemic. In Brazil the picture is more stable, despite the suspension of activities in some units. The fact is that Brazil has managed to maintain its domestic supply and that of its main importers in a very satisfactory manner. The suspension of some slaughterhouses will not impact the Brazilian market as other units may meet the Chinese demand. As far as beef is concerned, there is no other supplier on a global scale capable of meeting the demand of the Asian giant.

For beef, the current numbers are considerably higher compared to the same period last year. In the first semester, around 1.33 million tons of beef were exported, against 1.194 million tons in the same period last year, an increase of approximately 11%. In terms of revenue, growth was more emblematic, reaching roughly 28% in comparison with the same period of 2019. China’s share in Brazilian shipments is quite significant. In 2020 the Asian giant imported around 536 thousand tons of beef, with a 40% share of Brazilian exports. Hong Kong holds a 15% share, but as the semi-autonomous territory usually transfers part of its imports to mainland China, together they occupy a 55% share of Brazilian exports.