Brazilian meat companies could replace Ukrainian and Russian suppliers

RIO DE JANEIRO, BRAZIL – Rising grain prices following Russia’s attack on Ukraine are hurting Brazilian meatpackers. Still, the trade disruptions faced by Ukrainian and Russian meat producers may be an opportunity to boost Brazil’s share of global trade, industry sources said.

Russia and Ukraine together account for about 29% of global wheat exports and 19% of corn exports, both of which can be used as livestock feed.

Depending on how the situation develops, the conflict may also lead Brazil to access markets served by competitors. One potential development is for Europe to remove a ban on several Brazilian meatpackers imposed in 2018 following a food scandal.

“The industry is prepared to fill the gaps and support the food security of nations that may face supply shortages from the likely suspension or decline of chicken and pork exports from Russia and Ukraine,” said Ricardo Santin, president of meat lobby ABPA.

ABPA, which represents companies such as JBS and BRF in Brazil, the world’s largest exporter of chicken meat, said Russia and Ukraine compete with Brazilians in important markets in Asia, the Middle East, and Europe.

If Ukrainian exporters stop shipping meats amid the difficulties caused by the war, Santin said Europe will face a “big challenge.”

According to ABPA, about 20 Brazilian plants are currently suspended by the Europeans.

Poultry exports from Ukraine total about 430,000 tons per year, which represents about 10% of what Brazil traded in 2021, said Alcides Torres, director of Scot Consultoria.

“If Europe really needs Brazilian meat, it is clear that these suspended slaughterhouses … will be quickly reviewed,” Torres said.

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