January 16, 2008

Brazil expects drop in exported beef after 5.1 percent growth in 2007

Brazil is expecting a drop in exported beef volumes after seeing a 5.1-percent growth in 2007 to 2.5 million tonnes.  

Brazil's 2007 beef exports totaled US$4.4 billion in 2007, up 12.6 percent from  US$3.92 billion in 2006, according to preliminary figures from the Brazilian Beef Exporters' Association (Abiec).

The figure is expected to come down in 2008 due to rising demand in Brazil and possible restrictions from the EU, according to Pratini de Moraes, president of Abiec.

A 3-percent drop in volume is expected although value should grow 8-10 percent due to rising beef prices, he said.

Brazilian exporters are expected to seek alternative markets in Asia. Russia is also another growing market for Brazilian beef.

The EU, one of the biggest markets for Brazilian beef, recently imposed restrictions on imports due to lapse in food security found in Brazilian plants. Brazil recently sent delegations to the EU to protest the findings. Countries have banned Brazilian beef to various degrees due to sporadic outbreaks of foot-and-mouth disease in Brazil.

Meanwhile, exports of beef from Uruguay to Brazil totaled 15,500 tonnes in 2007, the greatest volume since 2002. In December, exports of live cattle to the Brazilian market represented one-third of total beef exports.

According to market analysts, the increase was due a shortage in Rio Grande do Sul state. Carlos Sim, of the Rio Grande do Sul Agricultural Federation (Farsul), estimates that 60 percent of the animals had been sent to slaughter and the remainder were breeding stock to replenish the herd.

There was a period in which the price of fattened steers in the state was higher than in Uruguay, he said. Last July, a 15-kilograme beef carcass brought US$39, while the Uruguayan went for US$33.90.