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Sea freight price rise worries meat sector

Meat exporters are apprehensive about the recent price increases announced by refrigerated cargo shipping companies. In some cases, the increase is as much as 60%, in US dollars, according to one exporter. Brazilian companies have received notification from freight companies that the increase will be linear, at US$ 1,500 per 40-foot container. Some shipping companies have announced that the increases will be effective as of December. Others will begin to implement the new prices in January.

The Brazilian meat export sector cannot support such an increase, says Francisco Turra, president of Ubabef, an organization that represents chicken farmers and chicken meat exporters. In the last four months, the sector has experienced a 45% increase in production costs, primarily due to increased grain prices, but it has only managed to pass on 25% of this increase to consumers. The margins in the sector, which are already abnormal, will further complicate matters, says Turra.

Information provided by Folha de S. Paulo
 

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