June 25, 2010
Demand for Brazilian beef rises in Middle East
Brazilian beef exports during the fiscal year to May remained stable, decreasing only 0.5% on-year to 861,631 tonnes swt, mainly supported by increased demand from the Middle East and Northern African region.
Beef exports to this region increased 14% to 350,578 tonnes swt over the period. In contrast, exports to the CIS fell 13% to 285,521 tonnes swt on-year.
The increased trade with the Middle East and Northern Africa has been driven by booming exports to Iran, with a record 18,094 tonnes swt in May (Brazilian frozen stewing cuts have a strong retail presence in this market), in addition to increased volumes to Egypt, Lebanon, Saudi Arabia, and Algeria among others.
Brazilian beef presence in the region has increased in recent years mainly as a result of rising demand, the suitability of Brazilian product for the Middle Eastern and North African consumers, government lobbying, in addition to the strong brand positioning of Brazilian chicken in these countries.
Meanwhile, beef exports to South-east Asia and China during January to May fell 15% compared with the same period in 2009, to 47,479 tonnes swt, as beef supplies remained tight in Brazil. Shipments of Brazilian beef to all markets in the region dropped during the first five months of 2009, with the exception of the Philippines, where better economic conditions boosted demand for beef.
