The impact of the Russian war on the global meat supply

A study conducted by the institutional investment bank ETA BBA found the current situation in Ukraine. It could have an impact on the Brazilian meat industry as well as the global beef supply.

Brazil is a net exporter of corn with Ukraine expected to contribute 35% of China’s corn supply by 2021. Any disruption to this supply could have a significant impact on Brazil’s grain prices, according to the Bank for International Settlements.

According to the study, their research translates into every 10% increase in corn prices. This resulted in a 2% increase in the production cost of the BRF food processor unit. This will have an indirect impact on Marfrig, who currently owns 33% of the company.

Both Ukraine and Russia are net exporters of chicken meat. Any delay in the supply chain may divert the demand to other countries such as Brazil. According to reports, BRF will benefit from the subsequent increase in product prices.
global meat supply

However, beef prices should remain stable and companies like JBS will face pressure in the chicken industry, according to the bank. and meat. But the beef industry is less affected as it faces less volatility in the United States and Brazil due to fluctuations in grain prices.

Minerva will also suffer minor consequences, according to the ETA BBA. The massive global demand for beef means that meat makers will be able to easily divert sales to other markets. If the crisis in Eastern Europe continues or worsens. According to the search.

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