The scenario is not good for the chain and could get worse with restricted corn supply
Although Brazil has an Agricultural Law (No. 8171/91) that guarantees the supply and maintenance of regulatory stocks to supply society, what the country has is only 850 thousand tons of corn in stock for any emergency. Because of this and with the restricted supply of grain, the scenario for the future of Brazilian pig farming is not good.
Representatives of the chain fear that it could get worse, according to a conclusion presented at the Committee on Agriculture, Livestock, Supply and Rural Development (CAPADR) of the Chamber of Deputies, last Tuesday (04), in Brasília (DF).
The technical advisor of the National Poultry and Swine Commission of the Brazilian Agriculture and Livestock Confederation (CNA, Brasília/DF), Victor Ayres, says that the effect of the dollar on Brazilian corn prices, the regionalized supply and demand for the product and The large export of grain are determining factors for the price to remain at high levels for pig farmers this year.
This situation has been most “felt” in the southern region of Brazil, which concentrates 60% of Brazilian pig production. “We have to work on long-term measures so that the pig farming sector is not vulnerable to the volatility of grain prices”, he emphasizes, also remembering that the grain chain was organized and managed to develop measures to capitalize on the producer and provide alternatives to low prices. of the price. “Today, producers have storage in the field, which makes it possible to make the product available during times of high prices,” he says.
For Ayres, the pig farming chain needs to follow the same example and create alternatives to shortages and not just wait for government intervention. According to the account, in addition to financial education and agricultural policy that better considers animal protein producers, it is necessary to put into practice state policies for self-sufficiency in the production and storage of corn in deficit states.
The technical advisor cited examples around the world for Brazil to follow. The European Union (EU), which produces almost eight times more pork than Brazil, does not suffer from a lack of corn for animal feed because in that country it is viable to replace the input with other energy sources. “In European countries there is also product volatility. However, they manage to survive, as the production chain receives direct subsidies from the government”, he points out.
He also talked about China, which has a dense population and also does not suffer from a lack of corn. “The shortage is the most serious thing for that country, they have already suffered from hunger. Support policies have priorities to guarantee supply”, he says, noting that China has stocks of 103 million tons of the product. “In Brazil, we have not developed policies to guarantee internal supply”, he states.
Source: CNA, adapted by the feed&food team.
