May 6, 2013

Brazilian beef exports grew over 33% on year in Q1

Brazil exported more than 250,000 tonnes of chilled and frozen beef in the first three months of 2013, which was an increase of over a third on year.

Exports to Russia outshone other countries as the main destination for beef exports, despite shipments being 25% lower than the first quarter of 2012. Second was Hong Kong, which saw a doubling of shipments. Exports to Venezuela and Chile also saw an increase.

However, shipments to Iran, once a key buyer of Brazilian beef, halved in 2012 due to the poor economic climate in the country. "There appears to be a limited recovery in trade since the turn of the year with exports to Iran more than halved," said Eblex.

Meanwhile, Brazilian shipments to the UK were up 200% compared to last year, but the country remains a small supplier of beef to the UK, accounting for less than 2% of the total UK imports in the first two months of 2013.

UK red meat levy board Eblex said the increase in exports came on the back of higher demand from international markets and more competitive prices. A combination of favourable exchange rates and a reduction in the value of the Brazilian Real also contributed to a lower average export price in US dollar terms, which is down 6% on year (US$6,039 per tonne).

Indications point to the Brazilian cattle industry expanding after it reduced in size in recent years. Industry decline was down to issues with disease and many regions switching to crop production, a result of increased profitability, Eblex said.

"Export-led growth has contributed to increased production, helped by a more efficient beef industry, and increased return to producers and processors. Brazil is the second largest global exporter of chilled and frozen beef after Australia and international trade is key for the domestic cattle sector," the organisation added.