January 26, 2012

Brazilian beef exports drop 14% in 2011

Brazilian beef exports lowered by 14% in 2011, to 820,239 tonnes, making it the world's third largest beef exporter behind Australia and the US.

Contributing to the on-year decline in exports was constrained beef production, along with robust domestic beef demand.

The Middle East was the largest region for Brazilian beef shipments in 2011, with Iran (130,649 tonnes), Egypt (96,937 tonnes), Saudi Arabia (27,951 tonnes) and Israel (15,937 tonnes) all taking substantial volumes.

While Russia also accounted for a significant proportion of Brazilian exports, shipments for the year declined 20% on-year, to 228,822 tonnes. The decline in Brazilian beef shipments to Russia in recent years has been due to several factors; including the emergence of the Middle East, expanding domestic consumption, falling beef production in Brazil and several market access issues.

The latest forecast from the USDA predicts a 2% on-year increase in Brazilian beef and veal production in 2012. Most of the additional production is expected to be consumed in the expanding domestic market, fuelled by rising incomes and a growing middle class.