August 5, 2011

Brazil's July raw meat exports drop 38.2%

The volume of raw meat exports from Brazil plunged 38.2% in July compared with the same period last year, with losses mainly due to the Russian trade embargo on Brazilian meat, according to local news.

Export sales for pork were the hardest hit in July, with foreign sales totalling US$82.4 million, down 40.8% from sales in June. Pork sales by volume dropped 34.7%, from 46,000 tonnes to 30,000 tonnes. Compared with July 2010, sales of raw pork have declined 21.5% by volume, and 5.2% in average price.

Exports for raw poultry totalled US$555.5 million in July, down 12.7% compared with June, which was partly affected by a decrease of 2% in the market price during that period. Poultry sales by volume decreased 11% during that time. Compared with last year, export of raw poultry fell 14.6% by volume, but increased by 2.2% in total revenue.

Fresh beef sales abroad by volume dropped 19.2% compared with June, and dropped 17.6% in terms of revenue to US$316.2 million in July, compared with US$383.9 million in June. In contrast with July 2010, fresh beef exports have dropped 22.5% in revenue, and 38.2% by volume.

The Russian trade embargo on Brazilian meat in effect since June 15, that was supposed to end by August 10, will continue indefinitely and be extended to 37 more processing plants, raising the total to 126. Rumours persist that Russia has been applying this pressure on Brazilian meat exporters in order to win the country's backing in its bid to gain acceptance to the World Trade Organization.