Cepea, 01/05/2023 – Despite the economic uncertainties that permeate the global market in 2023, the Brazilian pork sector is expected to grow this year. According to Cepea researchers, the basis comes from possible increases in domestic and, above all, foreign demand. In Brazil, purchasing power tends to remain fragile, which, in turn, ends up heating up domestic demand for pork, which is more competitive compared to other types of meat, such as beef. In addition, the industry’s strategies to invest in diversification and positioning of pork products in the domestic market should be maintained in 2023, strengthening demand for the protein. As for foreign demand for Brazilian meat, the USDA estimates that national exports will increase by 2.7% and the Brazilian Animal Protein Association (ABPA) estimates that exports will increase by 12%. The sector is betting on diversifying destinations and consolidating partnerships established over the past year. On the supply side, estimates by Cepea indicate a possible 3.3% increase in national production from 2022 to 2023. However, it is important to highlight that the high production cost should continue to put pressure on the profit margins of Brazilian pig farmers, especially those operating in the independent market.
Source: Cepea