Brazil’s Beef Exports Continue to Surge; Pork Exports Trend Lower

Brazil’s beef/beef variety meat exports in September totaled 134,587 mt, up 25 percent from a year ago and the largest monthly volume in six years. These results were bolstered by a weaker currency, as the Brazilian real’s average value against the U.S. dollar in September was about 10 percent lower than a year ago. The real has strengthened recently, as have Brazil’s cattle prices – partly due to the stronger currency but also reflecting South America’s seasonally tight cattle supplies.

For January through September, beef/bvm export volume was up 23 percent to 1.029 million mt while export value increased 16 percent to $4.5 billion. Chilled beef exports were up 19 percent to 106,006 mt and accounted for 10 percent of Brazil’s total export volume. Chile (50,604 mt, +17 percent) and the EU (18,079 mt, +26 percent) were the leading destinations for chilled beef, but exports were also higher for Algeria, Lebanon, Russia, Jordan and the United Arab Emirates.

Russia delisted nine Brazilian beef plants at the beginning of this month. But on Oct. 11, Russia’s Veterinary and Phytosanitary Surveillance Service (VPSS) announced approval of six Brazilian plants. It is now likely that plenty of Brazilian product will be available to help fully utilize Russia’s “third country” beef TRQ by the end of the year.

September pork/pork variety meat exports were down 24 percent from a year ago to 45,471 mt, with smaller volumes to the top three markets: Russia (9,655 mt, -43 percent), Hong Kong (9,814 mt, -1 percent) and Ukraine (8,360 mt, -52 percent).

For January through September, pork/pvm exports were down 9 percent to 383,224 mt, with export value declining 6.5 percent to $1 billion. While exports were larger for Russia (104,590 mt, +6 percent), volume was still down 11 percent from the same period in 2011 (Russia delisted several Brazilian pork plants in mid-2011). Exports were also lower for Hong Kong (90,644 mt, -2 percent) and Ukraine (55,184 mt, -45 percent), reflecting Ukraine’s temporary ban on Brazilian pork earlier this year.

(Source: Global Trade Atlas)