The increase in cases of African swine fever, which has already affected several countries in Asia and Europe, and has already reduced around 30% of Chinese herds, could have a positive impact on the Brazilian market. At least that is the vision of Coopavel (Cooperativa Agroindustrial de Cascavel/PR).
According to the president of the Cooperative, Dilvo Grolli, the expectation is that Brazil can increase its production and export of pork and chicken by up to 6%, in part to meet this growing demand from Asia, especially China.
Such an increase would also boost domestic demand for grains such as soybeans and corn, used to feed these animals. This movement tends to support domestic prices, especially corn, and benefit producers of these crops as well.
To enable these increases in production and exports, producers must make investments, which, according to the leadership, tend to be small. This is because the country already has idle capacity in both the chicken and pork chains, which would require few adjustments to meet growing demand.
Despite confirming that this is an opportune time for investments in the sector, Grolli highlights that such moves must be made with caution and strategic planning, since the tendency is for China to recover from these problems within four years, and demand to return decreasing.
Source: Agricultural News
