September 5, 2008

Brazilian beef exports in the first eight months of 2008 fell 22 percent on-year to 711,716 tonnes swt.

Despite the fall in shipments, revenue increased 18 percent as average export prices increased 50 percent to US$3,818 per tonne swt.

In August, Brazil exported 96,079 tonnes swt of beef, down 13 percent on-year, while average prices hit a record of US$4,341 per tonne swt, up 57 percent on-year.

Exports have been held back by the appreciating Brazilian Real, low supplies and higher prices in the domestic market.

The Brazilian Real has increased 22 percent on-year against the US dollar, while cattle prices have jumped 70 percent to US$3.62 per kg cwt last week in Sao Paulo.

Brazilian beef exports are projected to remain low for the rest of 2008, as cattle prices are not expected to decrease until 2010 while AgraFNP forecasts that beef production will decline 5 percent this year. In addition, the Brazilian Central Bank has increased the cash rate to 13 percent with further increases expected until 2009, adding pressure to currency appreciation.