April 8, 2011
 

Brazilian beef exports increase in March

After a slow beginning to the year, Brazilian beef exports gradually increase in March, amounting 79,600 tonnes swt.

Complementing the increased shipments was a rise in average export prices, averaging a monthly record of US$4,938/tonne.

However, even with the record returns for March, Brazilian exporters and processors continue to face rising purchasing costs and squeezed margins, with heavy steers averaging US$2.12/kg lwt during March, up 44% on the same period last year.

The rise in volumes during March was fuelled by a strong recovery in shipments to the CIS market, up 53% on month, to 33,113 tonnes swt. The surge for the month was influenced by the early distribution of the remaining 75% of the Russian import quota.

However, exports to the Middle East and North Africa region were lower, influenced by the disruptions triggered by the political instability across the region. Exports to the region for March decreased 16% on February, to 23,824 tonnes swt, with the major falls experienced in shipments to Iran (down 32% to 10,688 tonnes swt) and Libya (down 66% to 475 tonnes swt).

The rise in exports was also partly fuelled by a reported slow down in beef consumption in the domestic market. The increasing price premium of beef over lower priced chicken and pork has boosted consumption of these alternative proteins.