September 8, 2003

Brazil's Beef and Pork Production Expected to Rise in 2004

Both beef and pork production are forecast to increase in 2004 in response to continued export growth. The anticipated improvement of the Brazilian economy in 2004 will likely contribute to a small recovery in beef and pork consumption. Trade sources also expect a lower volatility of the exchange rate relative to the US dollar

next year. Market promotion efforts will increase as Brazilian beef and pork exporters look for consolidation of new markets overseas.

Beef production is expected to increase by 4 percent in 2004, driven mostly by continued expansion of beef exports, and, to a lesser extent, a small recovery in domestic demand.

Beef exports are forecast to continue to expand in 2004 resulting from Brazil's competitive advantages, favorable exchange rates and aggressive market promotion efforts.

Pork production is forecast to increase in 2004, although at a lower rate than in the past few years, mostly driven by expansion of pork exports. Pork exporters have combined competitive prices with aggressive market promotion efforts in new markets to offset the drop in pork exports to Russia due to the Russian import quotas.