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Pigs: In the short term, hope turns to the Japanese market

Domestic sales of pork, including typical variations in the month, have been relatively stable or have increased at moderate rates, according to Cepea. So, as far as demand is concerned, the big change the sector is experiencing is coming from exports. This is why, even though they account for a small portion of domestic production - in 2011, it was 15% - exports are having a big influence on prices of both meat and live pigs.

In the course of this semester, results are lower than expected, and the main reason is the ban by Ukraine, imposed in late March. From January to May, 22,000 tons fewer of fresh pork were exported than in the same period in 2012, according Secex. However, while Ukrainians and Russians occasionally impose barriers on Brazilian meat, other buyers are increasingly showing an interest in the product.

This week the slaughterhouses certified to export to Japan were announced, and market players think China will also step up its imports of Brazilian meat, if grains prices go up again on the international market.

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