enced difficulties in passing the cost on to
consumers, although managing to achieve
some balance with the good performance
of the exports, observes Rui Vargas, vice-
president of the pork department and tech-
nical director of the Brazilian Association of
Animal Protein (ABPA).
The relationship between product and
input reached one kilogram of pork for
four kilograms of corn, considering that a
normal relationship ranges at 7 to 8 kilo-
grams of the cereal, a situation that makes
it impossible for pig rearers to make any
profits, comments Nilo. The problem got
worse in the first half of the year, when
corn prices were high and shortages were
caused by hefty corn shipments abroad
in 2015, followed by a failure of the win-
ter crop in 2016. The price, according to
him, “was not that bad, with a difference
from 3% to 5%, compared to the previous
year, when prices were reasonably good,
but the great frustration occurred with the
production costs”, he stresses.
Referring to factors that were respon-
sible for keeping the value at reasonable
level, the official points to the high level
preserved in comparison to bovine meat,
stable consumption, in spite of the reces-
sion, and institutional support, besides
the record volumes of shipments abroad.
For his part, Valdecir Folador, president of
the Rio Grande do Sul State Association of
Pig Raisers (Acsurs) and market advisor at
the ABCS, just like Vargas, from the ABPA,
believes that the domestic crisis affected
consumption, and, in the meantime, he
strengthens the positive side of exports,
giving a destination to production. Folador
concluded: “2016 will be a year marked by
cash-strapped farmers and by the financial
difficulties faced by pig farmers”.
Anyway, both saw, in early November,
that pork supplies would go up again
in 2016, with a good productive perfor-
mance: from 3% up to 5%, according to
the ABPA leader, and even 6% to 7%, ac-
cording to Folador. The same is likely to
occur over the next years, according to
data from the Food and Agriculture Or-
ganization of the United Nations (FAO),
published by the Brazilian Confederation
of Agriculture and Livestock (CNA). Until
2024, relying on this source, production
in Brazil is supposed to soar 21%, reach-
ing 4.3 million tons.
With regard to 2017, the expectation
of the producing area is for a reduction
in the production cost, on the grounds of
more corn in the market. To this end, says
Nilo de Sá, from the ABCS, it is important
for corn imports to enter Brazil from the
United States, biggest producer and with
a huge crop, besides the excellent winter
crop in Brazil. Exports of Brazilian corn are
a cause of concern for Folador, from the Ac-
surs. “Without preventing the corn farmers
to make profits from their crop, corn prices
over R$ 48 a sack, like it happened in 2016,
make things unviable for the supply chain
that consumes corn”, he insists. Finally, Var-
gas, from the ABPA, hopes foreign sales will
continue on their normal rhythm, whilst ex-
pecting for an improvement of the domes-
tic consumption conditions.
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