October 6, 2014

Brazil's Poultry Exports Increased by Larger Volumes to Russia

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Poultry exports from Brazil surged in September after Russia announced in August that it had certified numerous additional processing facilities to be eligible to export poultry products to Russia. According to the Brazilian Animal Protein Association (ABPA), poultry exports increased 19% in September compared to a year earlier to 359.6 thousand tons. Gross receipts increased 24.3% to 718.6 million dollars for the month.

The executive director of ABPA, Francisco Turra, credits the increase to a more open Russian market and to increased exports to Egypt. In August Russia imported 8 thousand tons of poultry which jumped to 20 thousand tons in September. In response to economic sanctions imposed on Russia due to problems in eastern Ukraine, the Russian government restricted meat imports from the European Union and the United States.

In order to fill the void, Russia quickly decided to certify approximately one hundred Brazilian meat processing facilities as being authorized to export various meat products to Russia. Ironically, two years ago Russia had restricted meat imports from Brazil citing sanitary concerns.

Increased exports to Egypt also played a role in the September surge in poultry exports. Egypt's imports of Brazilian poultry went from 4 thousand tons in August to 13 thousand tons in September.

During the first nine months of 2014, Brazil exported 2.96 million tons of poultry, which was 3.5% more than the same period in 2013 while the total receipts declined 1.8% to US$ 5.88 billion. Up until August, poultry exports had been down compared to the same period in 2013, but the surge in September pushed exports to the positive side of the ledger.

The news for Brazil's pork exports is more mixed. Brazil's pork exports fell 9.9% during September to 36 thousand tons although the total receipts for the month were up 26% compared to last year to US$ 143 million. For the first nine months of the year, Brazilian pork exports are down 7.6% to 306.7 thousand tons, but receipts are up 13% to US$ 1.03 billion. The reduced volume was more than made up for by higher prices.