Foreign sales of Brazilian pork in July dropped 14.28% compared to the same period of 2008 to 48.1 thousand tonnes, according to the Brazilian Association of the Producers and Exporters of Pork (Abipecs). The value of the decline however was much more significant, 40.5% in the same comparison, to U$100.50 million.
The main reason for the drop in sales is the value of the Brazilian real against the US dollar, according to Pedro de Camargo Neto, president of Abipecs. “Even with the low domestic prices, exports lose competitiveness with the current exchange rates” he said in a statement.
H1N1 is not being blamed for the decline, “It has nothing to do with influenza. The real disease is the exchange rate,” he complained.
Abipecs affirms that the pork industry is going through a crisis in competing countries of the European Union, in Canada and in the USA. But, he says, those countries, the pork industry “has received broad support from their governments, which unfortunately does not happen to us.”
From January to July, Brazil exported 342.58 thousand tonnes of pork, 4.83% more than the same period of 2008. Revenue from sales was U$683.57 million, a decrease of 22.03% over same period of 2008. The drop reflects the sharp depreciation in the export prices. The average price in July was U$2,089 per tonne, a decrease of 30.57% in a year.