Does Brazil Pose a Threat to the U.S. Pork Industry?
Celso Weydmann and Kenneth Foster The U.S. agricultural community is familiar with the rise of Brazil as the chief U.S. competitor in the global soy market, but it is likely less familiar with Brazilian pork production. According to U.S. Foreign Agricultural Service (FAS) data, between 1997 and 2002, Brazilian pork production increased by 52 percent, and Brazilian pork exports increased by 345 percent. Much of the technical expertise fueling Brazil’s rising pork production is being transferred from North America and Western Europe. These developments suggest that the Brazilian pork industry might evolve (similar to soybeans) into a significant rival in the pork export market. In recent years, the U.S. has been a net exporter of pork despite a world pork market that became more competitive as new suppliers such as Canada and Brazil entered the market. Export markets are an extremely important activity in the U.S. pork sector because they have allowed the industry to gain economies of sc