Brazil exports down 22% in 2008

by Editor
Monday, September 08, 2008

During January to August 2008, Brazilian beef exports fell 22% year-on-year to 711,716 tonnes swt.

While revenue was up 18% as average export prices increased 50% to $3818/tonne swt.

Exports have been affected by an appreciating local currency (which has increased 22% against the $ year-on-year), low supplies (cattle prices have increased 70% to 362¢/kg cwt in Sâo Paulo) and higher prices in the domestic market.

In August, beef exports totalled 96,079 tonnes swt, down 13% year-on-year, while average prices reached a record $4,341/tonne swt, up 57% on August 2007.

It is expected that exports will remain low during 2008, as cattle prices are not forecast to decrease until 2010, beef production is expected to fall 5% this year (AgraFNP), and the Brazilian Central Bank has raised the cash rate to 13% p.a. (with further increases expected until 2009) adding pressure to the appreciation of the real.