Pig offal market in MERCOSUR

Earlier Report Observations

The pig offal market in MERCOSUR expanded consistently from 143.6 thousand tons in 2018 to 231.6 thousand tons in 2023. This growth was initially supported by the bloc's common external tariff, which facilitated intra-regional trade with a 0% rate for member countries, while the strategic focus of Brazil on commodity production and Argentina and Uruguay on quality and added value shaped regional supply dynamics.

Market volume saw particularly strong increases in 2020 and 2021, and growth continued through 2022 and 2023. This later phase was driven by shifts in consumer preferences towards higher-quality products and new segments, alongside increased activity from major players such as JBS, which made strategic acquisitions to strengthen its position in the pork sector.

International factors, including a reduction in the European pig herd and rising feed and energy costs, indirectly influenced the MERCOSUR market by altering global competition and prices. Domestically, inflation in countries like Argentina and Mexico raised production costs. The EU-MERCOSUR agreement, signed in December 2024, eliminated or reduced tariffs for pork offal, reshaping the trade landscape within the period.

Production pig offal in MERCOSUR

In kind, 2017-2020, K t

Top producers of pig offal, 2017-2020

World map of production of pig offal, 2017-2020

MERCOSUR's pig offal production has grown for the third year in a row. In 2020, the region produced 357.5 K t of pig offal, marking a 7.9% increase compared to the previous year. Looking at the period from 2017 to 2020, production rose by 16.9%, with an average annual growth rate of 5.3%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

MERCOSUR's pig offal production value has fallen for the second consecutive year. In 2020, the output was valued at 822.1 M $ US, showing a modest decline of 5.6% from the year before. The highest value was recorded in 2018 at 949.4 M $ US. The largest decrease occurred in 2019, with an 8.2% drop, while the biggest increase was in 2018, at 17.5%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports pig offal from MERCOSUR

Exports in kind, K t

MERCOSUR exported 200.3 K t of pig offal in 2020, remaining nearly unchanged from the previous year. The lowest export volume was in 2018 at 196.4 K t. The largest decline was recorded in 2018, with a 1.9% decrease, and the largest increase was in 2019, also at 1.9%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, Hong Kong, South Africa, and Angola were the top destinations for MERCOSUR's pig offal exports in volume terms. Hong Kong accounted for 51.9% of exports, South Africa for 4.7%, and Angola for 4.4%, together making up 60.9% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

MERCOSUR's pig offal exports in value terms have declined for the second year in a row. In 2020, exports amounted to 460.6 M $ US, representing a 12.5% decrease compared to the previous year. Over the period from 2017 to 2020, exports fell by 12.9%, with an average annual decline of 4.5%. The peak value was in 2018 at 583.8 M $ US, and the largest increase occurred that same year, at 10.4%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

Between 2017 and 2020, three key markets—Hong Kong, Russia, and Germany—dominated MERCOSUR's pig offal exports in value terms, collectively accounting for 71.1% of total exports.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports pig offal to MERCOSUR

Imports in kind, K t

After two years of growth, MERCOSUR's pig offal imports in volume terms declined. In 2020, imports totaled 21.6 K t, a slight reduction of 0.8% from 2019. From 2017 to 2020, imports increased by 10%, with an average annual growth rate of 3.2%. The highest import volume was in 2019 at 21.7 K t, and the largest increase was recorded that year, at 5.6%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, China, Germany, and the United States were the main suppliers of pig offal to MERCOSUR in volume terms. China contributed 32.8% of imports, Germany 13.0%, and the United States 3.4%. However, their combined share was only 49.2% of total imports, indicating a diversified supplier base.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

Following two years of growth, MERCOSUR's pig offal imports in value terms dropped. In 2020, imports totaled 177.6 M $ US, reflecting a significant decline of 11.9% year-over-year. Over the 2017-2020 period, imports increased by 29.7%, with an average annual growth rate of 9.1%. The peak value was in 2019 at 201.5 M $ US, and the largest increase was in 2018, at 40.7%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

Throughout 2017-2020, China, Germany, and Chile were the leading suppliers of pig offal to MERCOSUR in value terms. China accounted for 50.2% of imports, Germany for 17.0%, and Chile for 5.9%, together making up 73.1% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020