January 18, 2008

Brazil sees less beef exports in 2008 as living standards improve

Brazil is estimated to export less beef this year as the local demand grows due to improved standards of living, the Brazilian Beef Information Service in London said.

Brazil currently exports 27 percent of its beef production, with the remainder allotted to the domestic market.

Robert Metcalfe of the Brazilian Beef Information Service said that the strengthening of the Brazilian currency by 40 percent over the last two years meant higher domestic prices for some cuts of beef than those in the international market.

A decrease in beef exports became evident in the second half of 2007 and is likely to continue throughout the year, Metcalfe pointed.

Exports to the EU in the first eight months of 2007 totalled 126,500 tonnes while the UK imported just over 21,000 tonnes over the same period.

However, Brazil beef exports to EU are expected to slow after EU decreed some restrictions over Brazil beef on foot-and-mouth disease scares.

Metcalfe emphasized though that the EU rules will have little effect on export supplies. Farms are currently being audited to see whether they meet the EU import standards. Those farms which reach the approved list will comply fully with European and Brazilian traceability regulations.

The increased demand will have a far greater impact than any international sanctions, Metcalfe added.

Brazilian government figures show that the average income has risen by over 5 percent during 2007 and is expected to rise further this year.