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CNA study shows opportunities to export meat to China

Posted by Marina

The impacts caused by African Swine Fever (PES) to China, which have resulted since last year in the sharp reduction of its herd and pork production, may create opportunities for Brazil to further increase animal protein exports to the Asian country and expand the participation of agribusiness in that market.

The conclusion is from the study "How African Swine Fever influenced consumption habits in China", prepared by the international office of the Confederation of Agriculture and Livestock of Brazil (CNA) in Shanghai, in partnership with InvestSP. The publication shows that PSA, coupled with the Covid-19 crisis, will make the Chinese demand more meat from other countries to supply the domestic supply.

"The impacts and consequences of this health crisis are likely to extend over a long period, but they create great opportunities for Brazilian companies that export all types of animal protein," says the document. China, despite being the world's largest producer and consumer of pigs, has been living with a significant reduction in product supply and should import more in 2020.

According to the study, with plague reflections, China's pork production in 2019 was 42.55 million tonnes, down 21.3% from 2018, when pork production was 54, 04 million tons. The total consumption of the product last year fell 19% in comparison with 2018. The estimate this year is that the Chinese import 2.8 million tons.

In this context, the Chinese government has taken some measures to meet domestic demand. One was the substitution of pork for chicken, the second most consumed by the Chinese. Poultry production in 2019 grew 12.3% compared to 2018, totaling 22.3 million tons.

"To illustrate the size of this growth, it is worth mentioning that from 2017 to 2018, domestic poultry production grew only 0.6%", points out the study, which also pointed to a 55% increase in poultry imports last year, a volume of 779 thousand tons. The forecast for 2020 is that China imports 860 thousand tons of poultry meat.

Food security has become a priority for the Chinese due to the African Swine Fever, which reinforces the greater need for imports. Official government data from that country compiled by the China office show that, in the first quarter of this year, purchases of pork and beef were 951 thousand and 513 thousand tons, respectively, increases of 170% and 65%, respectively, in relation to the same period in 2019.

In this context, the study points out, the Chinese seek to diversify meat suppliers from other countries. In 2019, the Asian country approved the enabling of 644 refrigeration plants in the world for export to China, with Brazil representing 7% of this total. From January to April this year, 1,061 have already been approved, more than 90% of them North American, due to the trade agreement between the two countries.


Source: Notícias Agrícolas

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