Brazil’s livestock production value will grow 7% with boost from China, says CNA

Nov, 18, 2019 Posted by Sylvia Schandert

Week 201947

Brazil’s livestock Gross Production Value (GPV) is expected to reach R$234.5bn in 2019, a 7.2% increase compared to last year, boosted by China’s demand for Brazilian meat, pointed out a survey of the Brazilian Confederation of Agriculture and Livestock (CNA) on Monday (11/18).

With the outbreak of African swine fever hitting pig herds in China since August 2018, the Asian country has been heavily importing all meat as a way to fill the gap left by the drop in pork production.

This raises prices to record levels in Brazil and contributes to increased livestock revenues in the country.

“The spread of the disease in the Asian country, which is the largest consumer of pork in the world, has impacted the global food supply scenario and prices, especially pork and chicken,” said CNA’s Economic Center’s technical advisor, Paulo André Camuri, in a note.

The CNA study pointed to a 4% increase in gross beef value in 2019 to R$106.7bn; from 14.1% in chickens to R$45.9bn; and an increase of 24.7% in pork to R$17.3bn. The livestock GPV is still formed by the production of eggs and milk, and the latter will record an increase of 8.1% in the year, to R$54.1bn.

The increase in production value occurs amid record meat prices and strong Brazilian exports.

Last Thursday (11/14), the price of the arroba of live cattle maintained the trajectory of recent weeks and rose 4.35%, setting a new historical record at R$199.25, according to the indicator Esalq/B3, with boost mainly from strong export demand, notably from China.

In the wholesale in Greater São Paulo, according to data from the Center for Advanced Studies in Applied Economics (Cepea), the price of beef carcass renewed historical highs last week.

Similarly, piglet prices have reached the highest nominal levels in the entire Esalq study center historical series. The price of chicken wings also had, last week, the highest value in the historical series of Cepea, started in April 2004.

Tereza Cristina shows advances in Brazilian agriculture in the USA

Still on Brazilian livestock, this week Minister Tereza Cristina will meet her agenda in the United States, following the strategy of the Ministry of Agriculture, Livestock, and Supply (Mapa) to expand the presence of Brazilian agriculture in the world. The minister will hold meetings at the World Bank, the Wilson Center Brazil Institute and the Inter-American Development Bank (IDB), and will meet with US Secretary of Agriculture Sonny Perdue.

On Wednesday (11/20), the minister will meet with Secretary Sonny Perdue to discuss the agenda of Brazilian agriculture. Among the topics of the meeting is the suspension of imports of Brazilian fresh beef by the United States.

Minister Tereza Cristina said she will present Perdue with data on Brazilian beef production and the sector’s advances in recent years. “This is a technical thing. The United States is asking for more information, and we will give it,” the minister said last week while attending an event in Londrina (PR), adding that her proposal is to build with the United States a “open and frank channel” to consolidate the partnership between the two countries in the agricultural sector.

Sources: Reuters and MAPA

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