March 26, 2012

Brazil's February meat exports down 14%

In February of the current year, Brazil has exported 14% less than a year before to 77,000 tonnes of meat.

According to the Brazilian Association of Meat Exporters (Abiec), the reduction in export volume led to a 12.2% drop in revenue, to US$364.9 million. The average price per tonne has gone up by 2.12%, to US$4,700.00.

According to analysts, the decline in February's exports could be due to falling demand prompted by higher prices. "Most of the meat exported by Brazil goes to poor countries and there have been signs that these nations will not be able to cope with the new price rises", said César Castro Alves, an analyst at the MB Agro agribusiness consultancy.

In addition to those markets, there has also been a drop in demand from Russia and Iran. Moscow reduced its Brazilian meat imports by 28%, to 15,600 tonnes, which has led to a 26.3% drop in export revenue to Russia, to US$69.6 million.

Meanwhile, Iran has practically stopped buying Brazilian meat altogether. Exports to that country fell 85% in January 2012, to 2,000 tonnes, and in February the country did not even feature among Brazil's 10 biggest meat buyers. "Brazil has been unable to get new buyers and current ones have not been able to keep the market going," Alves remarked.

However, this scenario might be reversed by the US. "For the first time in three years the US has seen a monthly drop in beef exports, and if this trend remains, Brazilian exporters might benefit from it", he added.