Brazil and World
African swine fever and rising US tariffs may favor Brazilian exports
The outbreak of African swine fever and the news of the increase in US import tariffs should further open the doors to Brazil's meat trade.
A few days ago, the Brazilian government stated that in order to fill a gap in demand caused by swine fever, China has authorized pork exporters in Brazil to also ship the animal's edible fat. And this week a delegation, led by agriculture minister Tereza Cristina, traveled to Asia. In the group's program, there is a passage through China, which aims to accredit more Brazilian producers to ship meat to the Chinese market.
Nowadays nine plants are qualified for export to that country and there is the possibility to enable 31 more producers. Swine fever losses are around 16 million tonnes and current shipments do not fulfil the demand.
In addition to the problem faced by Chineses, with the outbreak of the disease, US President Donald Trump said that on Friday, the 10 th, the importation tariff increased from 10 to 25% over US $ 200 billion in products imported from China. This fact may shake the negotiations between the two countries, further favoring Brazilian exports.
In addition, there is a greater demand for cuts of chicken, such as drumete, and other items not very exported to Asians. This is also reflecting prices, which are already changing in the international market.