Brazilian MDM exports become unprofitable amid weak prices and high freight costs

Brazilian exporters of mechanically deboned meat are facing weak overseas demand and prices that in several markets no longer cover export costs. As a result, producers are redirecting part of their output to the domestic market.

In West Africa, the main destination for Brazilian product, prices are around $450/t CFR. Freight alone exceeds $280/t, making shipments economically unattractive. In the Philippines, buyers are bidding around $400/t amid high inventories and congestion at the Port of Manila.

Exporters are seeking to diversify sales. Shipments to Argentina are being discussed at around $450/t, with shorter transport distances potentially making the market more attractive. Meanwhile, exports to Cuba remain limited due to power supply problems and weak trading activity.

According to Secex, Brazil exported 409.1 thsd tons of mechanically deboned meat in January–August 2026, up 34% y/y. However, the increase largely reflects a low comparison base in 2025, when several countries temporarily restricted imports of Brazilian poultry products following avian influenza outbreaks. August exports fell 12.5% from June to 42.7 thsd tons.

With export opportunities weakening, Brazilian processors are increasingly using the product in processed and breaded foods for the domestic market. Some volumes are even being redirected to poultry meal production and rendering, an unusual outlet that points to excess supply.

Tags: Brazil, prices, meat, MDM