The higher prices of competitive meats in the internal market, a firm domestic demand, the
gradual recovery of international prices, the growth of overseas sales (14.8%) and a small
decrease (-1.0%) in internal availability were the main items that sustained the pork market
in 2007. However, the performance of the economy left a lot to be desired. The offer of pigs
was greater than the demand, stocks were still high in industries during the first semester and
there was a strong pressure on costs in the second, due to the increase in grain prices, which
did not allow for a better performance in the whole chain, as the increase in costs cannot be
totally passed on to the consumers. Under these circumstances, it is considered that part of
the productivity gains, that were obtained during the period, in the field and in the industry,
were passed on to the society.
The international market operated, for a good part of the year, under the influence of the
2005 FMD outbreaks. The states that were involved had difficulties in increasing their export
volumes and negotiations to sell into new markets were delayed. FMD is the only factor that
impedes the sector from having more than 62% of the world's pork market. Also, the
conjuncture was strongly influenced, by the fact that Santa Catarina, the largest producing
state in the Country, was not selling to the Russian market.
The recognition of Santa Catarina as being an FMD free area, without vaccination, alters this
unfavorable situation, because it allows for the possibility of the definitive elimination of FMD
as a barrier to access, facilitating, in the medium term, the opening up of markets that pay
more for the product. However, the difficulty that the Country has to maintain a credible official
certification, can continue hindering the access to these markets, what is important is the effort
carried out over recent years, in offering health guarantees, by public institutions or by the
companies.
| Brazilian Pork production
(thousands of tons) |
| 2002-2007 |
Source: Abipecs & Embrapa - Systematic Survey of Pork Production and Slaughter (LSPS) |
PRODUCTION
With this disturbing short term picture, the production had a more moderate growth, interrupting
the rigorous expansion from the previous two years. Because of it being easier to place the
product nearer to the consumers', the production from the integrations and the cooperatives
maintained their growth levels, contributing so that industrial production increased by 4.45%
(2.64 million tons). This result was not bigger, because the spot market, which represents about
20% of industrial production, had difficulties accessing the market, which shrank between
5.0% and 7.0%. Likewise, the subsistence production levels fell, due to the lack of competitiveness.
This performance was also influenced, in the final quarter of the year, by a lower slaughter
weight. Therefore, the total production for 2007, which was estimated to reach around 3.1
million tons, finished the year with 3.0 million tons, an increase of only 1.85%.
HERD
| Sows housed in Brazil (thousands of heads) |
| 2002-2007 |
 |
| Source: Abipecs & Embrapa - Systematic Survey of Pork Production and Slaughter (LSPS) |
The increase in production happened mainly because of an increase in productivity rather than an increase in the breeding stock population, because new farms were built in substitution
for the least productive ones and the replacement of adult animals for those having a greater genetic potential was intensified. But, new projects continued to be implanted in the agricultural area. With this, the population of slaughtered animals per sow housed increased over the last three years by 12.5%, with the number of finished pigs per sows per year going from 19.2
to 21.6. The herd of industrial sows, estimated to be 1.48 million head remained stable in
2007. Representing 63% of the total, generated 90% of the total production. While the
subsistence herd (887 thousand), 27% of the producing sows, generated only 10% of the
production. This indicates that a strong modernization trend is underway in the sector (production
on ranches, biosafety administration, handling, nutrition and health, etc.), the result of which
has been a constant increases in productivity.
SLAUGHTER
The industrial pig production over the past three years has increased by 19.8%, from 26.4
million head at the end of 2004, to 31.8 million head in 2007. Also in this period, the average
weights of slaughtered animals increased by about 5.0%. On the other hand, the subsistence
production (pork that is consumed on the rural property, occasionally selling excesses) continued
its downward path.
In the same period, the slaughtering of the Abipecs member companies increased by 22.6%,
consolidating their market participation, while the slaughters of other companies increase by
only 1.9%. The slaughtering of swine under Federal Inspection - SIF, reached 24.3 million head
in 2007, showing an increase of 3.7% in relation to 2006. In the same year, the associated
companies, that perform 88.0% of the SIF slaughters and 67.0% of the industrial production
in the Country, because of their good position in the market, slaughtered 21.4 million head,
a growth of 7.7%, while, those that are not members, due to difficulties in accessing the
market, decreased by almost 20.0%. For the same reason, it was estimated that the slaughtering
with state and municipal certification decreased by 2.8%. Of the Total industrial production,
76.4% were slaughtered under Federal Inspection and 23.6% under other forms of certification.
| Brazilian Pork Production (thousands of head) |
| 2002-2007 |
|
| Source: Abipecs & Embrapa - Systematic Survey of Pork Production and Slaughter (LSPS) |
Slaughter of swine by type of certification
and self-consummation in Brazil
(Millions of Head) |
| 2004-2007 |
|
| Source: Abipecs & MAPA |
