Brazilian meatpackers, large and small, have seen a drop in exports during October, which have been considerably slower than during the month of September. Shipments dropped some 43,000 tons, particularly to China, which has caused certain unrest, because the Asian giant has long become Brazil's (and Mercosur) main export market.
Exports in October totaled 188.560 tons, compared to 231.450 tons in September. According to data from the Brazilian exports secretariat, Secex, in the last five working days of the month, there was a further 11% decrease.
Brazilian meatpackers are concerned because a steady flow of sales to China has become somewhat erratic, with a softer demand, although overall sales this last month were higher than those in October 2021.
Sources from the main meatpackers indicate that in the next few days, we will be able to identify more clearly which countries decreased their purchases, and how significantly China has impacted.
If that is the case with China, as many suspect, the country may have started reducing imports of Brazilian animal protein, which traditionally stop in December only to pick up after the Lunar New Year in February.
However the Chinese economy slower-pace, a looming domestic construction and mortgage situation, combined with the devaluation of the Yuan against the dollar, is believed to be behind the larger picture, even when domestic suppliers might have built sufficient stocks in anticipation of the December/February quarter.
But Brazilian meatpackers which have branches both in Uruguay and Argentina have also reported concern because of a weaker demand from China and a greater interests in bargaining prices.