Brazil has just recorded its highest monthly beef export volume in two years, on the back of declining value in the local currency, the Brazilian Real.
August trade data showed a big jump in exports, driven in part by increased flows of finished cattle onto the market and the softer currency trend, making Brazilian beef more attractive in customer countries.
Brazil exported 90,600 tonnes of beef in August, valued at around A$410 million. The average FOB value was around A$4513/t.
In comparison, Australia’s total beef exports for August reached 81,257t, down 1.5 percent from July, and virtually unchanged from August last year, as the high A$ currency value continues to curb buyers’ appetites.
Brazil’s August shipping performance was a massive 38 percent above the same month last year. In total value, August’s trade in US$ terms was Brazil’s highest since September 2008, and a 21pc rise on August last year. Average FOB value was 11.8pc below a year ago, reflecting the greater access to finished cattle currently being experienced, trade sources said. August’s FOB/t value was 2.4pc above July, which was the lowest result for the 2012 year.
The August result continues a recent surge in Brazilian export volumes. In the 12 months to August, Brazil exported 872,00t of fresh beef, 9pc more than the same period a year earlier. The year ended August 2011 was the lowest 12-month period for Brazilian exports, accounting for only 803,000t.
Other meat protein exports are also increasing as a result of currency patterns. Brazil’s pork shipments in August rose 21pc on a year earlier, and for the eight months of 2012 to August, pork was up 5.7 and chicken, 1.2pc.
Brazilian meat market analysts say that the upward trend in grain prices is likely to see domestic poultry and pork prices rise in coming months, potentially making beef (predominantly grassfed in Brazil) more price competitive, and limiting supplies available for export.