June 22, 2009

Beef exports from Brazil, Argentina and Uruguay in the first five months of 2009 fell to the lowest level since 2004, to 680,000 tonnes swt.

 

Shipments this year dropped four percent on-year, and were 22-percent lower than the amount shipped in 2007.

 

In addition to sluggish and irregular demand from major importers since the start of the financial crisis, Brazil has sharply reduced shipments over the last three years due to tight supplies and higher cattle prices, as well as declining competitiveness of the Brazilian real until the financial crisis. Export restrictions to the EU have also curbed Brazilian shipments.

 

Like Brazil, Uruguay is struggling with tight supplies following a high slaughter in 2007 and high cattle prices.

 

This year, Argentinean shipments have increased on 2008 levels, as the government eased export restrictions. Supplies have also increased as many producers boosted marketings during last summer's drought to liquidate their herds, switching to more profitable agricultural crops.

 

Russia remains South America's main market, accounting for 31 percent of total exports.