December 14, 2023

Brazilian beef exports to China surge but face slashed prices

The repercussions of a decelerating Chinese economy are being felt in Brazilian protein exports, particularly in the beef sector, where prices have seen a significant decline, MercoPress reported.

Despite a 47% increase in Brazilian beef sales to China in November, reaching 256,000 tonnes compared to 173,000 tonnes in 2022, the overall revenue grew only marginally, from US$872.4 million to US$1 billion.

The challenge arises as the average price per tonne of beef, which stood at US$5,020 last year, experienced a substantial drop to US$3,910 in November. In the cumulative eleven months of 2023, Brazil exported 2.25 million tonnes of beef, generating a total revenue of US$9.75 billion, according to Abrafrigo, the Brazilian association of meat packing plants.

While 72 countries increased their purchases of Brazilian beef, 99 witnessed a decrease. China remains Brazil's primary market, although the reduced total volume and significantly lower prices per tonne led to a 30% decline in income, totalling US$5.23 billion.

In a noteworthy shift, the United States solidified its position as Brazil's second-largest customer this year, experiencing a 68% surge in purchases to 291,000 tonnes, equivalent to US$944.6 million due to a lower average tonne price.

Chile secured the third position with an acquisition of 92,300 tonnes, marking a 28.5% increase, and revenue reaching US$449 million, up by 24.6%. Hong Kong followed closely with 106,000 tonnes and US$327 million in revenue, while the United Arab Emirates purchased 63,900 tonnes, contributing US$280 million. These volumes and financial figures were provided by Abrafrigo and Globo Rural.

-      MercoPress