Brazil beef exports reach record highs, fuel inflation

Brazilian beef exports have maintained a strong pace this month, influencing domestic prices and driving inflation higher in Brazil. According to data from Secex (Foreign Trade Secretariat), fresh, chilled, and frozen beef exports reached 176,000 tonnes in the first three weeks of October. If this pace continues through this month’s final week, external sales could hit a record 265,000 tonnes.

Robust global demand has halted the downward trend in international prices, which are holding steady at $4,600 per tonne. Domestically, the strong demand for Brazilian beef is forcing slaughterhouses to pay more for cattle ready for processing.

In São Paulo, the price of an arroba (roughly 15 kg) of cattle is averaging R$308, according to Cepea (Center for Advanced Studies in Applied Economics). This month alone, prices have risen by 12%.

This increase in prices is being passed on to consumers. According to Fipe (Economic Research Institute Foundation), food inflation reached 1% in the 30 days leading up to the second week of October. In comparison, food prices had risen by just 0.39% in São Paulo during the entire month of September.

Five of the ten products contributing the most to inflation over the past 30 days are related to livestock. Beef prices have risen by an average of 5.7%, with some cuts, like sirloin, seeing a 7.6% increase during this period.

The international market is proving highly favorable for Brazil, with the volume and revenue from this month’s exports surpassing last year’s figures by 42%. According to Secex data, Brazil is exporting 12,600 tonnes of beef per business day, generating daily revenues of $58 million.

See below the top ten ports that stood out in terms of beef exports in the first eight months of this year in Brazil. The data is from DataLiner.

Top Beef Export Ports | 2024 | TEUs

Source: DataLiner (click here to request a demo)

The largest buyers of Brazilian beef are China and the United States, accounting for 45% and 9% of total exports, respectively. According to Abiec (Brazilian Beef Exporters Association), China purchased 935,000 tonnes valued at $4.1 billion up until September, while the U.S. had bought 147,000 tonnes worth $867 million.

Source: Folha de S. Paulo

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