Brazilian Beef Exports Continue To Fall
BRAZIL - Brazilian beef exports have resumed in 2011 from where it left off in 2010 with lower volumes recorded due to strong domestic demand due to a firm national economy, according to Peter Duggan from Strategic Information Services at Bord Bia.
14 March 2011
2 minute read
This has also boosted export prices as Brazilian Real has strengthened against the Dollar and Euro.
Brazilian meat consumption jumped by at least two per cent last year, following national econmic growth of around eight per cent.
Most of the increase in meat consumption was evident in poultry last year, which now stands at 44kgs per capita. Despite cattle prices rising by 26 per cent to €2.26 a kilo last year, beef consumption increased as per capita sales were unchanged at 30kgs per capita while some further population growth was reported.
During 2010 the Real strengthened by over 19 per cent against the Euro.
This trend has shown no signs of slowing down, with the Real to date appreciating by a further three per cent, Mr Duggan said.
Helped by good export prices and tighter domestic supplies, Brazilian cattle prices to date are 45 per cent ahead of last year’s levels at €2.70/kg.
According to Safras, Brazilian beef output fell by almost seven per cent to 657,000 tonnes in January.
For the remainder of the year, Safras estimate that production is likely to recover as the year progresses, with output for the year forecast to increase by one per cent to 8.65 million tonnes.
These factors have led to shipments of beef for the first two months of 2011 been back by 22 per cent to 217,000 tonnes cwe.
Exports for the remainder of the year are likely to experience some recovery, although developments are likely to be influenced by the strength of the Brazilian Real and domestic demand. The principal destinations for Brazilian exports to date have been Russia, Iran and Hong Kong.
TheCattleSite News Desk
