Pork market in MERCOSUR

Earlier Report Observations

The fresh, chilled, or frozen pork market in MERCOSUR expanded from 4.2 million tons in 2018 to over 5.1 million tons by 2023. This growth was initially supported by trade facilitation within the bloc, including the continuation of 0% tariffs for pork products among MERCOSUR countries. A specific boost to regional export prospects came in late 2019 when the United States authorized imports of refrigerated and frozen pork from Paraguay, strengthening the bloc's external trade position.

Market volume increased notably between 2020 and 2022, driven primarily by record production in Brazil. This output growth was fueled by significant investments in technology and productivity enhancements within the Brazilian swine sector, aimed at meeting both domestic and international demand. Concurrently, shifting consumer preferences across the region towards fresh and processed meat products with high nutritional value supported sustained consumption, even as a slowdown in Chinese demand momentarily affected export flows in 2022.

By 2023, the market volume stabilized at just above 5.1 million tons. Brazilian pork exports reached a new record, successfully diversifying to other destinations to offset reduced purchases from China. Domestically, production growth in Brazil moderated due to an excess supply situation and lower input costs, while in Argentina, the market continued its long-term expansion focused on internal supply, reflecting the pork's growing adoption in local diets.

Production pork in MERCOSUR

In kind, 2017-2020, K t

Top producers of pork, 2017-2020

World map of production of pork, 2017-2020

Pork production in MERCOSUR has increased for the third consecutive year. In 2020, the region produced 5 212 K t of pork, marking a steady 8.0% rise compared to the previous year. From 2017 to 2020, production grew by 17%, which translates to an annualized growth rate of 5.4%.

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

In value, 2017-2020, M $ US

Pork production in MERCOSUR has risen for the second year in a row. In 2020, the value of pork output reached 12 338 M $ US in the region, showing a modest 1.3% increase over the previous year. Between 2017 and 2020, production value expanded by 12.4%, corresponding to an annualized rate of 4.0%. The lowest value was recorded in 2018 at 10 419 M $ US, with the largest decline that year at 5.1%. In contrast, the most significant increase occurred in 2019, with a jump of 16.9%.

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

Exports pork from MERCOSUR

Exports in kind, K t

Exported pork volumes from MERCOSUR have increased for the second consecutive year. In 2020, the region exported 921.3 K t of pork, reflecting a sharp year-on-year surge of 52.8%. From 2017 to 2020, exports grew by 53.9%, equating to an annualized growth rate of 15.5%. The lowest volume was recorded in 2018 at 491.2 K t, which also saw the largest decline of 17.9%.

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

Between 2017 and 2020, China, Hong Kong, and Russia were the top destinations for pork exports in kind from MERCOSUR. China accounted for 35.4% of exports, Hong Kong for 15.4%, and Russia for 11.8%. Together, these three markets represented 62.6% 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

Foreign pork supplies from MERCOSUR have increased for the second year in a row. In 2020, the region exported pork worth 2 181 M $ US, indicating a significant 43.3% rise compared to the previous year. From 2017 to 2020, export value grew by 47.8%, with an annualized rate of 13.9%. The minimum value was recorded in 2018 at 1 102 M $ US, which also experienced the largest decline of 25.3%.

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

From 2017 to 2020, China, Hong Kong, and Russia remained the key destinations for pork exports in value terms. China led with 36.8% of exports, followed by Hong Kong at 14.2% and Russia at 13.9%. Collectively, these three markets accounted for 64.8% of total export flows.

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

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

Imports pork to MERCOSUR

Imports in kind, K t

The market experienced notable fluctuations during this period. Imports peaked in 2018 before dropping to their lowest point in 2019, with a swing of 20 times. In 2020, cross-border shipments of pork to MERCOSUR stood at 34.4 K t, up by 1,662.4% compared to 2019. The minimum value was recorded in 2019 at 2.0 K t, while the maximum was in 2018 at 39.6 K t. The largest decline occurred in 2019, with a drop of 95.1%.

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

During 2017–2020, pork imports to MERCOSUR came from many different markets. Even the largest suppliers—Denmark, Spain, and Chile—together represented only 3.1% of total imports in kind.

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

MERCOSUR's pork import volume has declined for the third consecutive year. In 2020, the region imported pork worth 154 M $ US, marking a substantial 12.9% decrease from 2019. Over the period 2017-2020, imports fell by 21.6%, with a compound annual growth rate of -7.8%.

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

Throughout 2017–2020, the three largest markets—Denmark, Spain, and Chile—remained central to imports in value terms, together accounting for 3.6% of total flows.

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

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