African swine fever in China likely to cut soy exports and lift meat sales

Brazil’s Agriculture Minister, Tereza Cristina Dias, has indicated that the country’s soybean exports are likely to decline in 2019 due to the outbreak of African swine fever in China. The outbreak is expected to kill as many as 200m pigs in the country, reducing demand for animal feed made from grains and oilseeds such as soybeans and corn. However, the potential growth of meat exports to the destination is likely to offset the loss, according to the Minister.

Na viagem que fará a China, ministra vai tratar das exportações de carne e soja https://t.co/izPugzMPbF pic.twitter.com/GT63p6OAg1

— Min_Agricultura (@Min_Agricultura) April 23, 2019

According to a statement by the Minister of Agriculture, China is likely to reconsider Brazil’s previous proposal of allowing 60 meat packers to export to the nation. Currently, nine meat plants have received approval. DatamarNews reported the Chinese government had authorized Brazilian pork meat exporters to ship edible pork fat to meet increased local demands resulting from the African swine fever outbreak in the country.

“We are going to sell our protein at $2,000 a ton, be it chicken, beef or pork,” said Dias after meeting with industry stakeholders at the headquarters of the Brazilian Association of Animal Protein (ABPA), according to Reuters.

The Minister will head to China in May, with stopovers in Japan, Vietnam, and Indonesia.

The following DataLiner graph shows Brazil’s soybean, chicken, pork, and beef export trends to China:

DatamarNews reported that Brazilian soy growers are also at the mercy of the yet unknown size of the US yield this season and the fact the US also has plenty of stock to spare following the China-US trade war. The uncertainties involving how the trade war might end affecting not only Brazil’s soy prospects but also Argentina’s.

Sharing is caring!