December 8, 2010

Brazilian beef exports in November drop to six-year low

Brazilian beef exports in November dropped 28% on October (30% on-year) to 55,200 tonnes slaughter weight - the lowest monthly total since February 2004.

The sharp decline comes mainly as a result of low cattle supplies and record cattle prices in November (which reached a record of US$220/kg lwt), along with the high local currency and very profitable domestic market.

The higher price for cattle was reflected in the increased beef prices offered by Brazilian traders during the month. Average FOB prices for November were US$4,871/tonne, the highest on record.

Despite the decline in November exports, Brazilian beef shipments during the 11 months to November were up 5%, to 892,713 tonnes swt - mainly the result of high shipments in the previous month, including 101,667 tonnes swt in July. However, the total volume for 2010 will still be far lower than the record 1.2 million tonnes swt exported during 2007.