Australian fires may favor Brazilian beef exporters

According to Scot Consultoria, the fires that hit Australia recently may lead to greater Brazilian beef exports to Indonesia in addition to live cattle shipments. “These fires are cyclical, but the fire has affected beef cattle and tends to undermine Australian performance in the international beef trade,” said company director Alcides Torres.

According to the executive, estimates from the National Farmers Federation released by the Australian press indicate that since September an area of ​​6.3 million hectares has been burned, causing the loss of 100,000 head of cattle.

The possibility of increasing Brazilian meat shipments to Indonesia, currently supplied by Australia, and trading live cattle, a segment in which Brazil also competes with Australians, boosted Minerva Foods ON assets in Tuesday’s session at B3, which rose 4.58%, leading the highs in the meat sector.

In late August 2019, the Indonesian government approved beef imports from ten Brazilian meatpackers, and at the time, Minerva announced that it held five plants authorized to export to Indonesia. In the second half of the year, the first shipments were made to Australia. In 2018, Indonesia was responsible for importing approximately 150,000 tonnes of beef, with Australia supplying about 40% of this total.

The following chart, based on Datamar’s DataLiner data, shows Brazilian exports of chicken, pork and beef from January 2015 to November 2019:

Chart Source: DataLiner / Datamar

Source of the article: Estadão Contents

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