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The drop in exports and the suspension of emergency aid paid by the federal government to alleviate the crisis generated by the COVID-19 pandemic, are having a negative impact on the pig market. At the beginning of the year, with the lower demand, prices paid for live pigs dropped 20% while costs continue to rise. In January, the cost of the live pig stayed at R$ 6.77 per kilo on average, while the selling price is at R$ 6.00. The market is expected to be more favorable from the second quarter on, when China should resume purchases with greater vigor.
In Brazil, according to information from the Federal Foreign Trade Secretariat (Camex), exports of fresh, frozen, or chilled pork in the 22 working days of January totaled 55,790 tons, compared to 72,200 tons registered in the 22 working days of December. The regional data have not yet been disclosed, but, according to Jalles, the trend is also toward smaller shipments.
Costs
The drop in prices paid per kilo of live pigs leaves the pig industry in Minas Gerais on alert, and the management of the activity becomes increasingly essential to overcome the crisis. With the kilo quoted at $ 6.00 on average, the producer has accumulated a loss of $ 0.77 per kilo of live animal, since, according to data from the Brazilian Association of Pig Breeders (ABCS), the average cost of production is $ 6.77.
Costs are expected to retract in the coming months, as soon as the grain harvest starts, increasing the supply of corn and soybeans in the market in general.
To understand more about the price variations in the different Brazilian and world markets, go to the markets and prices section of Pig333.
February 4, 2021/ ABRA/ Brazil.
https://abra.ind.br/
