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Brazilian Beef Exports Begin to Fall

06 July 2009

BRAZIL - Brazils beef exports continue their decline, with January through May export volumes down nearly 17 per cent to 436,525 MT compared to last years small volume (down 37 per cent compared to 2007).

The average export value per kilogram was down 14.5 per cent to US$3.11, meaning the total export value declined by nearly 29 per cent to US$1.36 billion, writes Erin Daley, USMEF Economist in Meat International. According to the Meat International report, exports to Russia, their largest market, were down 23 per cent to 127,094 MT while exports to their second-largest market, the Middle East, were up slightly to 87,338 MT, led by growing demand from Egypt.

Exports to Europe were down 28 per cent to 46,910 MT while exports to Hong Kong are nearing the volume to Europe, up 29 per cent to 42,218 MT. Russia continues to account for around 30 per cent of Brazil’s beef export volume while the EU share has fallen from 20 per cent in 2007 to around 10 per cent in 2009. In U.S. dollar terms, carcass equivalent prices for Brazilian beef are still around 20 per cent lower than last year.

The recent Greenpeace report brought action from retailers around the world and in Brazil. Retailers claimed they do not source beef from cattle raised in the Amazon and/or called on Brazilian producers to verify that beef cannot be traced back to cattle grazed in the Amazon region.

Errors aside, this report might bring support to the Brazilian government’s efforts to restrict deforestation by adding commercially driven economic incentives to government policy. On June 22, 2009, the 2009/10 Agriculture and Livestock Plan (PAP) allocated US$53.7 billion (37 per cent more than last year) to finance production costs, marketing and investment for the October 2009 through September 2010 crop year.

TheCattleSite News Desk



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