March 22, 2013

Due to favourable pasture conditions, Brazil's steer prices have remained steady in February and the first two weeks of March 2013, averaging at US$0.33 per kilogramme. 

However, they are still lower on-year, assisting export volumes. Brazil's beef shipments rose 38% on-year in February, at 75,816 tonnes. Chicken and pork exports were also up, reflecting higher protein demand in international markets.

Brazil's strong beef exports stretched across a wide range of markets, with shipments to Russia up 48% on-year, at 22,587 tonnes. With the Brazilian currency appreciation, beef export prices to Russia were lower, down 10% on-year.

Shipments to Hong Kong were also up 82% on-year, at 14,908 tonnes.

Exporters reported that political uncertainty in Egypt is affecting the economic situation - with a significant decline in beef exports to Egypt in February, down 35% on-year, at 4,572 tonnes.

Brazilian chicken exports also rose 2.5% on-year, totalling 263,650 tonnes, with Saudi Arabia and Japan being the major destinations. Shipments to Saudi Arabia increased 58%, at 60,930 tonnes. Pork exports totalled 34,575 tonnes in February, an increase of 12% on-year.

Brazil recently announced the exemption of federal tax on products considered essential for good nutrition and hygiene. Such products include beef, pork and chicken meat, which will have a 6% decrease in prices. The decision could increase domestic meat consumption, especially beef, as it is considered the favoured source of protein by Brazilians.