November 10, 2010

Brazil's beef exports may reach US$5 billion

Brazilian beef exports are likely to reach US$5 billion in 2010, said the president of the Brazilian Association of Meat Exporters (Abiec), Antonio Jorge Camardelli, on Monday (Nov 8).

If the estimate is confirmed, the sector's revenue will exceed last year's (US$4.12 billion) by 20% and come close to the US$5.33 billion recorded in 2008, before the global crisis.

"In terms of volume, we are expecting 1.8 million tonnes against 1.924 million tonnes in 2009 and 2.163 million tonnes in 2008," Camardelli affirmed.

Brazil's beef exports totalled US$4.11 billion over January to October 2010 - 22% more than a year before (US$3.37 billion). In terms of volume, Brazil exported 1.495 million tonnes against 1.472 million tonnes in the same period in 2009.

In October beef exports rose by 11% against a year before, to US$419 million from US$378 million and fell to 134 million tonnes from 155 million tonnes, mostly due to an European ban on Brazilian meat exports.

"The drop in export volume is also due to Brazil's appreciated currency and to the fact that global meat prices are standardised, thus ensuring equal competition among countries", he added.

Lower supply and higher raw-material costs have prompted exporters to select buyers that offer higher earnings. "In order to increase our revenue we are looking into new markets such as Japan, South Korea, Taiwan, the US, Canada and Mexico," he noted.