Brazil has a record in meat production and foreign participation increases – 03/15/2023 – Vaivém

Brazil produced 26 million tons of beef, pork and chicken last year, 4% more than in 2021.

The share of the foreign market in Brazilian production has been increasing. Last year, 28% of “in natura” meat went to the foreign market, up from 27% in 2021.

Production data are from carcass weight obtained by IBGE (Brazilian Institute of Geography and Statistics); those for export, from Secex (Department of Foreign Trade).

This greater participation in the foreign market helped to maintain heated prices in the domestic market. Although it has lost strength in a few months, the average price of cattle rose 12% last year, to R$ 317 per arroba, according to data from Cepea (Center for Advanced Studies in Applied Economics). The average price of exports appreciated by 16% per ton, in dollars.

Chicken, leader in volume sent abroad, has the largest share between production and exports. Last year, 34% of production went to the foreign market. On average, foreign prices rose 22% in 2022, according to Secex. The interns had an appreciation of 5.4%, points out Cepea.

The pork sector, after the acceleration of foreign sales to the Chinese in 2020 and 2021, due to African swine fever in the Asian country, lost strength in the Chinese market in 2022. Exports to the Chinese fell by 14%. Brazil managed, however, other Asian markets, such as the Philippines and Thailand. As a result, foreign sales of “in natura” pork meat remained stable.

Average external prices dropped 2.6% last year, according to Secex, while internal prices dropped 17%, according to Cepea. This drop occurred in a period of rising production costs and greater domestic supply. In the second half, however, there was a recovery in prices.

In the quarterly survey of animal slaughter, released this Thursday (15), the IBGE informs that the weight of carcasses, resulting from the slaughter of 29.8 million animals, reached 7.97 million tons, 6.9% more than the previous year.

Chicken meat production rose to 12.9 million tons, with the slaughter of 6.1 billion birds, and pork was 5.17 million. While chicken had an evolution of 2% in domestic production, pork added 5.5% more.

The IBGE also showed why milk prices soared in the domestic market. The uptake of the product fell for the second consecutive year, forcing industries to increase the dispute for the national product and to import more.

In 2022, Brazilian milk production inspected by federal, state or municipal bodies decreased by 1 billion liters, to 23.85 billion. Compared to 2020, the drop is 1.8 billion liters.

Drought in the pastures and reduced investments caused this drop, which ends up reflecting on the consumer’s pocket. Milk registers one of the main highs in inflation at the beginning of the year.

Biodiesel While Brazil is getting ready to resume discussions on mixing biodiesel with diesel, the states are seeking to expand the share of this renewable fuel in the market.

Biodiesel 2 Under the Bolsonaro government, the percentage of admixture in the country has returned to 10%. The sector hopes that negotiations over the next few days will raise this percentage to 15%.

USA In the United States, according to a study by LMC International, production was 11.8 billion liters in 2021, generating US$ 23.2 billion for the economy. The agricultural sector alone benefited with US$ 7.4 billion.

USA 2 North American biodiesel producers, however, want a rapid advance in production. Cleans Fuels, a clean energy industry association, says the industry’s goal is to reach at least 23 billion liters by 2030.

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