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Beef: Export record and significant national and international demand 

    As a result of a huge investment in technology that took place over decades, Brazil has become one of the most important beef producing countries in the world. Given the productivity and quality of the Brazilian product, beef has become such a highly competitive food that it has reached the market in more than 150 countries around the world.  

    In addition to its international popularity, the country's beef is also indispensable for Brazilians, who consume 80% of their own production. According to Embrapa (Brazilian Agricultural Research Corporation), in 2015 Brazil was positioned worldwide as the holder of the largest herd with 209 million heads; the second largest consumer with 38.6 kg per inhabitant per year and the second largest exporter with 1.9 million tonnes in the beef market.

 

    Currently, beef exports already represent 3% of the country's exports, with revenues of BRL 6 billion, constitute 6% of the GDP (Gross Domestic Product) with a turnover that exceeds BRL 400 billion and show an increase of 45 % in the last 5 years.  

 

    In 2018, the Brazilian export of beef was estimated at 1.643 million tons, while that of 2019 rose to 1.828 million tons, according to data published by Abiec (Brazilian Association of Meat Exporting Industries), demonstrating a record export for the country.  

    For the year 2020 the bovine export scenario is positive. Estimates by the CNA (Confederation of Agriculture and Livestock of Brazil) point to an increase in demand from the foreign market for this product, in addition to a massive demand for the domestic market.  

    It is expected that there will be a 14% increase in beef shipments, reaching 2.7 million tons exported, an indication of the CNA also based on the variation of beef from 5% to 26%, due to the increase in exports from product for China that grew 54.5% between 2018 and 2019, given the importance of the Asian market as a major target for Brazilian beef exports.  

    According to Julia Passabom, an inflation specialist economist at Itaú Unibanco, in a response given to the Brazilian magazine Exame, the devaluation of the real against the dollar contributes to increases in exports, as it makes the Brazilian product more competitive on the international market. According to Passabom, in addition to the influence of exports, which are largely aimed at China, there are other factors that influence the price of this meat in Brazil, one of which is the seasonality of the product.  

    Factors of this seasonality point to an increase in demand for this type of meat at the end of the year. The off-season in the sector reflects the characteristics of the protein cycle, which presents a more intense slaughter at the beginning of the year, but it is something that does not encourage large deviations in product prices. Knowledge in these areas, both in the international and national market, is important to invest in this product, which has enormous potential for expansion.

By Marina Leite on 12/12/19

Sources:

https://bit.ly/2EaehER

https://bit.ly/2t4vgWL

https://bit.ly/2LNJZMs

https://bit.ly/38CeCyj