Brazilian beef gains bigger share of Arab market as Indian supplies suffer

According to Leandro Bovo of Radar Investimentos, Brazil is gaining a bigger share of the Middle East beef market due to the lower supply of buffalo meat from India. Bovo divulged this during a webinar held on April 14 by the consultancy Datagro and Grupo Pecuária Brasil (GPB).

India exports buffalo meat to the Middle East, but due to the COVID-19 pandemic, it faces difficulty in slaughtering animals and producing. Only after the end of the pandemic are Indians expected to return to exporting buffalo meat to Arab countries.  “India was a significant supplier of cheap protein to the Middle East, but when this stopped, the Middle East turned to Brazil almost immediately,” said Bovo.

According to Bovo, China also has a strong appetite for Brazilian beef. The coronavirus devalued currencies worldwide and the real was one of those that lost the most value against the dollar. At the same time that it negatively affects other areas of the economy, the appreciated dollar favors Brazilian exports as it makes the country’s products more competitive in the international market. “It has made our meat very cheap,” said the managing partner of Radar Investimentos.

According to information released during the webinar, the price of a beef arroba produced in Brazil was at US$37.5 on Tuesday, while in Australia it was US$58 and the United States US$58.5. Argentina had a cheaper price at US$37, but has production limitations.

“No country in the world is in a position to produce today with the quality that we produce, the volume that we produce, and with the ability to distribute meat to all markets in the world, at the price that we offer,” said Bovo.

Source: ANBA

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