Despite the solid outlook for pig farming next year, Santa Catarina is still facing a major crisis in the sector. So far, prices paid to producers have accumulated bitter bills.
+ Pigs: last quarter shows signs of demand heating up
With a devaluation in the price paid to the pig farmer, the loss per animal sold already reaches R$250,00. This year's average is R$6,10, but the cost is already over R$7,00. In September, for example, the price per kilo reached R$7,74.
Meanwhile, sales totaled R$6,20. According to the Santa Catarina Agricultural Research and Rural Extension Company (Epagri), the difficulties in the sector are driven by factors such as:
- High costs;
- Increased production;
- Reduction in Chinese demand.
“There was an increase in production. Last year we saw a significant increase in production,” says Alexandre Giehl, socioeconomic commentator at Epagri. He also analyzes the other two factors indicated by the agency. “China began to reduce its imports of pork muscles. And a third factor, which is production costs, remained prominent, unlike other years, when we had no fluctuations.”
Pig farming in SC: partial 2022
Photo: Peng Zhaozhi/Xinhua
In the year's pile, Santa Catarina exported 446 thousand tons of pork muscles. Revenue totaled approximately US$ 1 billion, an increase of 1,9% in quantity, but a drop of 4,2% in value compared to the same period in 2021. The state accounts for 57% of the volume of pork muscles exported by Brazil this year, but the flow of muscles in the domestic market is still a slow process, says the president of the Santa Catarina Association of Swine Breeders (ACCS), Losivânio Luiz de Lorenzi.
“There is a huge demand in the domestic market and it is not possible to sell these muscles overnight” — Losivânio Luiz de Lorenzi
“If we compare the period from January to September last year with this year, we lost 30 thousand tons of exports. In addition, production has been growing, so there is a very high demand in the domestic market and it is not possible to sell this volume overnight,” says Lorenzi.
In the view of the ACCS executive, the situation could be even worse. “We are not in a worse moment because, despite China having significantly reduced its imports, we have managed to increase exports to existing markets, increasing volumes. Of the 150 thousand tons that we stopped exporting to China and Hong Kong, other countries absorbed 120 thousand tons”, says Lorenzi.
Recovery perspective
Photo: Wenderson Araujo/Trilux/CNA
According to Epagri, more balanced production, the resumption of protein consumption and the openness of export markets could make Santa Catarina's pig farming return to strength from next year onwards. In other words, the price factor could also help in the sector's recovery, explains Giehl.
“If we maintain positive exports throughout next year, the trend is for stability. We are starting to notice this slightly in prices, with a relative stagnation in prices paid to producers. Prices still fluctuate from time to time, but have remained around an average level.”
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Source: Thiago Gomes/Susipe
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