China's demand for its staple meat, pork, remains strong despite fears that the coronavirus outbreak would hurt consumption.
The Shipments from Brazil, a key Chinese supplier, more than doubled in February compared to the previous year, according to figures from the Brazilian export group ABPA. This keeps prices high in the South American country.
China is facing a major protein shortage after the spread of African swine fever ravaged its pig herd, the world’s largest. That has boosted meat buying in the country for months, but some analysts were concerned that the health crisis would now mean a reduction in demand. So far, that hasn’t been the case, at least for pork.
With restaurant crowds dwindling due to fear of exposure to the virus, Home cooking is on the rise: Good news for pork, China's favourite meat. But it also means cutting consumption of beef, which is eaten more while eating out. Analysts at Rabobank have said the outbreak "appears to be the least affected" compared to other proteins.
«The impact of African swine fever on pig herds in China and Vietnam has kept shipments strong, at levels unusual for this time of year.", said Ricardo Santin, director of ABPA, in an emailed report.
The trend could continue. Brazilian chicken export giant BRF SA said this week that China's health crisis will likely mean increased demand for food products with higher safety standards, improving the outlook for overseas meat suppliers.
Meanwhile, disruptions at Chinese ports have begun to ease, allowing shipments to continue flowing.
«Logistical obstacles in Chinese ports have not had a significant impact on Brazilian exports"said Francisco Turra, head of ABPA.
China is the top destination for Brazil's beef and pork. The South American country is the Asian nation's top supplier of beef and ranks seventh for pork, according to Rabobank.
Source: Bloomberg
Raw meat export revenue increases 54,6% in fever ☛ https://t.co/BblTCoBYAP
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