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Decline in Brazilian Beef Exports Continues

31 May 2011

BRAZIL - Brazilian beef exports continue to be affected by unfavourable exchange rates which is indirectly helping domestic beef consumption, writes Peter Duggan, Strategic Information Services, Bord Bia.

For the first quarter of 2011, Brazilian beef exports were some 14 per cent lower at 378,000 tonnes cwe.

However, the average value has risen by 35 per cent to €3,600 per tonne reflecting the strength of the Brazilian Real against the Euro, which is running almost nine per cent stronger relative to the comparable period in 2010.

Brazilian forecasts from Safras suggest that exports for the full year will rise by three per cent to 1.85 million tonnes.

However, this would require a significant increase in supplies over the coming months, which there is no indication of as of yet.

The latest GTIS monthly report showed exports back by 16 per cent for the month of April. In addition, the suspension of Brazilian imports by Russia are also likely to impact on export volumes.

Whilst only two months data is available for Brazilian beef output for 2011, the signs point to a gradual increase in output as the year progresses based with figures for February one per cent higher than last year.

Strong domestic demand, unfavourable exchange rate movements and the absence of the Russian market suggest that exports are unlikely to increase strongly.

TheCattleSite News Desk



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