February 8, 2011

Brazilian beef exports lowest in years

Brazilian beef exports totalled 51,800 tonnes swt in January, the lowest quantity since August 2003 (43,291 tonnes swt) - a reduction of 12% on December and down 23% on-year.

Average export prices remained relatively stable, easing 1% on December to US$4,838/tonne.

Brazilian monthly beef export volumes decreased between June and November 2010 as a result of tight supplies, an unfavourable exchange rate and strong domestic demand and prices. Exports improved in December, with Venezuela, Hong Kong and Libya ramping up their buying.

The improvement in the Brazilian economy has increased total domestic meat consumption during the last 10 years, to 94kg/person per year.

According to the local trade, quotes from Russian importers have been volatile with a tendency to push down prices. Meanwhile, Middle Eastern quotes have been considerably higher - although trade to Egypt has reportedly slowed considerably due to the current political uncertainties.