Pressure on Brazilian Beef Exports

GLOBAL - After several years of intense cow culling, the Brazilian beef industry is still facing lower availability of cattle for slaughter, according to the AHDB European Market Survey.

6 February 2012

1 minute read

The Brazilian Institute of Geography and Statistics (IBGE) show cattle slaughterings in the year to September were almost three per cent down on 2010 at 21.5 million head. Production fell by five per cent year on year to five million tonnes indicating a marked fall in carcase weights.

Increased domestic demand and hence firm beef prices, plus a strong real, put pressure on export levels in 2011. Exports of fresh and frozen beef declined 14 per cent year on year.

In Europe, following the end of the dioxin crisis in Germany at the end of January 2011, the EU cull sow market gradually recovered and prices increased steadily through most of the year.

Prices were in general slightly higher than year earlier levels, particularly in Germany, Denmark and the Netherlands.

After reaching a peak in early December, prices have started to fall back.