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Brazilian Live Cattle Exports Down

14 April 2011

BRAZIL - Brazilian live cattle exports during the first three months of 2011 totalled 103,518 head, down 34 per cent on both the previous quarter and when compared with the same period in 2010.

Venezuela continues to purchase the bulk of Brazilian live cattle, as local government intervention in the Venezuelan industry has resulted in a sharp decline in domestic cattle and beef supplies. In addition, the short distance between the two countries facilitates trade - the majority of Brazilian live cattle exports have been traditionally shipped from the nearby northern state of Pará (96 per cent during the quarter).

However, a factor that influenced the slowdown in exports to Venezuela (in addition to higher Brazilian cattle prices and lower supplies) was the devaluation of the local bolívar against the US$ in January 2010.

This was a dual devaluation in which the value of the bolívar was set 17 per cent lower against the US$ for import contracts related to basic goods such as food and health, but 50 per cent lower for other non essential item imports. Contracts set up prior to January 2010 were not affected by the devaluation.

March quarter exports to Lebanon totalled 27,170 head, up 585 per cent on the December quarter and 28 per cent higher when compared to the first quarter of 2010.


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