A surge in domestic beef demand and an appreciation in the local currency contributed to a fall in Brazilian beef exports in the past year.

Brazil exported 871,592 tonnes of beef in 2010-11, 9pc less than it exported in 2009-10, according to Meat and Livestock Australia’s Meat and Livestock Weekly.

Total Brazillian beef production was relatively stable during 2010-11, falling by just 2pc on the previous year.

Brazil’s total beef production for the year was five million tonnes, with 76pc of production selling into the domestic market.

Export sales were put under pressure by a 7pc appreciation in the Brazilian Real during 2010-11.

Margins for export processors were squeezed in the past 12 months with heavy steer prices rising by an average of 37pc to BR$3.32/kg liveweight,  and the rise in export returns of 27pc failing to match that increase.

Brazil’s largest export market was the Middle East region which took 363,947t or 42pc of total exports (up 6pc). Of that total Iran took 172,054t (up 8pc) and Egypt took 100,738t (up 49pc).

The largest single export market was Russia which took 289,787t or 33pc of total exports (down 5pc).

South America was Brazil’s third largest market, rising by 21pc in the past 12 months to 67,808t, while shipments to the EU represented just 5pc of total exports, falling 9pc year-on-year to 42,918t.