2024 Projections Indicate Quarterly Export Increase Compared to 2022
BRF’s export volumes have surged by 25% over the past two years, reaching 1 million tons of chicken, pork, and processed products. This growth is attributed to an increase in export authorizations and a strategic shift in international sales. The company expects to export the equivalent of an additional quarter compared to 2022, according to Leonardo Dall’Orto, vice president of planning and international markets, speaking at the SIAL (Salon International de l’Agroalimentaire) in Paris. These figures exclude sales of chicken to the halal market, which adheres to Islamic principles.
In 2023, BRF gained 67 new export authorizations, and an additional 66 markets opened this year. “The significant growth came from the new authorizations we secured,” Dall’Orto noted. The company also focused on aligning products with customer demands, recognizing that they sometimes overlooked opportunities to export what they already had available.
A key contributor to this export growth has been chicken feet, primarily purchased by China. Dall’Orto explained that chicken feet produced in non-authorized plants for China were often discarded, despite demand in other markets such as Vietnam, Haiti, and the Dominican Republic. “These countries pay less than China but still want the product,” he added.
Another product making an impact is mechanically separated meat (CMS), which BRF previously did not export. The company now sources CMS from producers unable to export and sells it from its authorized units. “We went from zero to exporting 4,000 to 5,000 tons per month,” with destinations including South America, South Africa, and the Philippines.
Improved product utilization has allowed BRF to increase export volumes. Under the BRF+ program aimed at efficiency gains, the company identified products that could be incorporated into industrial formulations, freeing up capacity for external sales. “We began to export more chicken breast by improving deboning and swapping some legs for breasts. When legs are much cheaper than breasts, we can use more legs in processed formulations and export more breasts,” Dall’Orto explained.
The reopening of the U.K. market over a year ago has also positively impacted BRF’s exports, especially for cooked products—like chicken strips for food service and turkey breast—that offer higher added value. Dall’Orto noted that this could also facilitate a return to sales in EU countries, which have been closed since 2018 due to the Operation Trapaça scandal, linked to meat adulteration suspicions.
Currently, the European market is in a pre-listing process. “We’ve made the necessary adjustments to our factories, particularly for the U.K., where standards are quite similar, so they are ready to export,” he said, mentioning 12 chicken processing units.
In the short term, Dall’Orto expects a stable outlook for chicken and pork prices, with balanced supply and demand. “We’re coming off a well-balanced grain production season, leading to a cost and price equilibrium.” While he refrains from making specific estimates, he believes BRF’s exports will continue to grow “at a good pace next year.” The company currently holds a 27% share of national chicken, processed meat, and pork exports, with 170,000 tons of chicken exported monthly, 70,000 of which go to the Middle East halal market.
In addition to optimizing existing resources, BRF is also analyzing consumer habits in importing countries to boost external sales. “We’re working on product specifications for customers. Understanding the end-use of products has added significant value,” Dall’Orto concluded.
As an example, he highlighted the importance of quality in chicken feet for China, noting that size, quantity of calluses, and skin color all affect value. “Feet without calluses are worth more. We’re starting to classify them more effectively, as a 35-gram foot is more valuable than a 25-gram one,” he said.
