Brazilian meat industry is suffering from trade disruption
Brazil' meat-packing industries are to take a deep impact due to disruption in trade with China, the EU and Arab countries, according to the latest projection presented by ABPA.
Brazil’s chicken exports could fall to around 4.20 million tonnes in 2018, from 4.32 million tonnes last year, due to a European Union ban on the Brazilian product in April., informs Reuters.
Anti-dumping measures taken by China and stricter halal requirements from Arab countries are other obstacles that could influence the decrease in this sectors. "It is regrettable. The sector had been doing well", said Franciso Turra, head of ABPA referring to the poultry industry. 12 plants operated by BRF were banned from exporting to the EU market due to deficiencies detected in the Brazilian official control system.
Pork exports are also likely to fall by up to 12% from 697,000 tonnes in 2017, compared with ABPA expectations in December for foreign sales in 2018 to grow by up to 5% by volume especially if Russia re-opened its market for Brazilian pork exports.
ABPA also predicted on Thursday chicken output would fall by 1 to 2 percent this year to about 13 million tonnes due to a fall in the number of birds available for slaughter. That compares with a forecast rise in 2018 of up to 4 percent at the beginning of the year.
Meatpackers will also be affected by the new freight policy that it supposes to raise logistical costs for meatpackers by 35% on average while also increasing the price of meats to final consumers by 15%.
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