Despite the higher volumes, the profitability of the industry has been severely affected this year, as average FOB prices have decreased 30% over the same period in US$ terms to US$2,066/tonne, and the real has been recovering rapidly.
Average prices have failed to recover during the year, increasing only 3% from January to October to US$2,150, and 36% down from last year’s September peak of US$3,361/tonne.
Meanwhile, the industry is becoming less competitive, as the real has appreciated 33% against the US$ during the year. Local analysts forecast an ongoing rise, unless more drastic measures are taken by the government – as the 2% tax on foreign financial investments has had a minimal effect in counteracting the real’s appreciation.
The Brazilian Pork Exporters Association will focus in opening new markets during 2010, particularly high value destinations, to overcome low values in Brazil’s main markets – CIS, South-East Asia, South America and Africa.
