Brazil’s Beef Exports Remain Strong; Pork Exports Lower than Last Year

Chart comparing Brazil's Beef & Variety Meat Exports yearly from 2010 through 2013 in Metric Tons

Brazil’s August beef/beef variety meat exports were the largest in several years, up 19 percent from a year ago with growth to all major destinations. Exports to leading market Russia increased 54 percent to 32,142 mt, while shipments to No. 2 destination Hong Kong (25,180 mt, +88 percent) were also sharply higher.

For January through August, Brazil’s beef/bvm exports increased 22 percent from a year ago to 894,889 mt, including larger volumes to Russia (207,359 mt, +14 percent), Hong Kong (203,869 mt, +94 percent), Venezuela (79,743 mt, +60 percent), the EU (75,065 mt, +12 percent) and Chile (51,680 mt, +25 percent). Imports of Brazilian beef remain suspended by Saudi Arabia, but Brazil posted increases to several other Middle Eastern markets including Egypt (85,368 mt, +4 percent), Israel (14,330 mt, +29 percent), Jordan (12,007 mt, +50 percent) and the United Arab Emirates (11,008 mt, +64 percent). Exports to Iran declined 25 percent to 25,967 mt. Chart comparing U.S and Brazil Beef Carcass prices monthly from August 2011 through September 2013 in US dollars

Brazil’s cattle prices (carcass basis) have increased to $1.47 per pound, up 14 percent in the last month and 3 percent higher than a year ago, but still down 10 percent from the same period in 2011.

The increase is due in part to the recent strengthening of the Brazilian real, which rebounded to its June 2013 level of 2.21 Brl/dollar after bottoming at 2.41 Brl/dollar in August. Compared to a year ago, however, the U.S. dollar is still up 9 percent against the real. Chart comparing the USD and Brazilian Real Weekly FX rates monthly from 2010 through 2013

Brazil’s August exports of pork/pork variety meat were the largest of 2013 but still down 3 percent from a year ago on lower volumes to top markets Russia (12,481 mt, -12 percent) and Hong Kong (8,840 mt, -14 percent), which were not fully offset by a rebound in exports to Ukraine (12,724 mt, +9 percent) and strong growth to Angola (7,001 mt, +65 percent).

For the first eight months of the year, Brazil’s pork/pvm exports were down 7 percent to 337,753 mt, due in large part to a suspension-related decline to Ukraine (46,824 mt, -44 percent). Exports were also moderately lower to Hong Kong (80,830 mt, -2 percent). Exports to Russia (94,935 mt, +16 percent) were higher than a year ago but still 18 percent below their 2011 pace.

Chart comparing Brazil's Pork & Variety Meat Exports yearly from 2010 through 2013 in Metric Tons

(Export data source: Global trade Atlas)