Surge in Brazil's beef exports

by Editor fleischwirtschaft.com
Friday, September 20, 2013

Brazilian beef exports have soared as a result of strong demand from Russia and a weakening of the Brazilian real.

According to data published by Ministry of Development, Industry and Foreign Trade (MDIC), exports of Brazilian beef reached 109,300 t in August, a 20.6% year-on-year increase and the highest monthly beef export volume since 2007.

Exports to Russia were up 32% year-on-year for the month, while shipments to Paraguay, Australia, Egypt and Chile also rose. Exports to Hong Kong were up 120% year-on-year, although they were 28% lower than those recorded in July 2013. Average export prices were down 7% year-on-year to $4.32/kg as the result of a depreciation of the real.

Brazilian beef exports could receive a further boost with the recent recognition of eight more states as free of foot-and-mouth disease (FMD). Alagoas, Pernambuco, Paraíba, Rio Grande do Norte, Ceará, Piauí, Maranhão and north Pará have now been recognised by the Brazilian Ministry of Agriculture (MAPA) as free of the disease with vaccination, meaning that 99% of Brazil's cattle herd is now located in an FMD-free zone. MAPA added that the states of Amapá, Roraima and Amazonas were likely to have their FMD status changed from high risk to medium in coming months.

Brazilian pork exports were down 4.34% year-on-year to 52,341 t in August, with revenue down 1.17% to $132.85 mill. However, the Brazilian Association of Pork Producers and Exporters (ABIPECS) said that the drop in sales was mainly due to operational problems and not difficult markets. It added that expectations for the rest of the year were positive, with industry already reporting an increase in shipments in September.

Ukraine, which recently lifted a temporary ban on Brazilian pork, accounted for the biggest share of exports in August (24.31%), while Russia was second at 23.85% and Hong Kong third at 16.99%.
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