Pig Farmer’s Day: ABPA predicts advances and overcoming for the sector
Celebrating this Sunday, July 24th, the Pig Farmer’s Day, the pig industry in Brazil is gradually entering a moment of stabilization and recovery, after experiencing one of its most critical moments in recent history. The assessment is from the Brazilian Association of Animal Protein (ABPA).
After practically three years of positive movement in exports and domestic consumption, the pig industry in Brazil has faced, since mid-2021, one of its most challenging moments. The accumulated and historical rise in production costs, the momentary decrease in international demand and the domestic inflationary scenario with the consumer’s lower purchasing power challenged the sector to trace new paths to restore the strength of the production chain.
In the international market, after stabilizing import levels from China – at levels lower than those achieved in 2021, but higher than in previous years – Brazil saw new opportunities arise for domestic production. The most recent of these is Canada, with the opening of the market and the activation of eight plants.
“New players gained strength in imports, such as the Philippines, Vietnam, Singapore, Thailand and Argentina, which allowed the country to maintain average monthly levels of exports, since March this year, above 90,000 tons. Considering the entire first half of 2022, the average of shipments was 85 thousand tons. For comparative purposes, the average sales in the first six months of 2021 was 93.7 thousand tons, while in 2020, the average for the first half was 79 thousand tons”, analyzes Ricardo Santin, president of ABPA.
In the domestic market, the high competitiveness of pork has generated positive effects on its consumption. According to the ABPA, the expectation is high compared to last year, gaining space previously occupied by beef on the shelves. Investments in new product lines by companies have favored an increase in protein consumption.
“The competitiveness of protein, however, has not been favored by production costs, which remain high. Corn and soybean meal, although at prices slightly lower than those recorded in 2021, still maintain strong pressure on the final bill for agribusinesses and producers. In this context, diesel, plastic, cardboard and other inputs accumulate a strong increase, reinforcing the challenge for producers. However, recent surveys show that there was a slight reduction in cost pressure, with the prospect of a good supply of inputs for this harvest, in addition to an improvement already observed in trade with China and other relevant markets, which brings new impetus to our exports in the second semester”, evaluates the association’s director of markets, Luís Rua.
Projections for production and exports of poultry and swine farming in Brazil for 2022 will be on the agenda of the virtual press conference that ABPA will hold next Thursday (28), at 10:00 am, via ZOOM. At the press conference, initial observations of the competitiveness study that will be launched by the Association will also be presented during the International Poultry and Pig Farming Exhibition (SIAVS), the main event for the sectors in the country, which will take place between August 9th and 11th, in São Paulo (SP). ).
SECTORAL STRATEGIES AT SIAVS – Leaders from all over the sector will follow the debate to overcome the critical situation of pig farming during the International Poultry and Pig Farming Exhibition (SIAVS), which will take place between the 9th and 11th of August, at Anhembi Parque, in Sao Paulo-SP).
From the point of view of conjunctural strategy, during the CEOS panel, leaders of the largest agro-industries in the sector will address a strategic vision of the food producing sectors in the face of international demands, the post-pandemic challenges and the strengthening of guidelines for the sustainable management of the productive sector, with a focus on global food security, in addition to the companies’ plans for the coming years. Among the names confirmed for the meeting are the CEOs of BRF, Lorival Luz, of Seara Alimentos, José Campos, of Aurora Alimentos, Neivor Canton, and of SSA, José Garrote. The debate will be mediated by the president of the Brazilian Association of Animal Protein (ABPA), Ricardo Santin.
Other conjunctural and technical panels will be in the program of the biggest event of the sectors in the country. See more at www.siavs.com.br