Beef: Lower Prices Squeeze Growth Margins in Export Revenue

According to the Brazilian Meatpackers Association (Abrafrigo), beef exports totaled 256.1 thousand tonnes in November, a 47% increase compared to the 173.75 thousand tonnes shipped in 2022. However, beef export revenue growth was more modest at 15%, rising from US$ 872.4 million to US$ 1 billion.

The relatively subdued growth in revenue can be attributed to a decline in the average prices of the exported protein. While a ton was sold for US$ 5,020 last year, last month saw an average of US$ 3,910.

From January to November, the country exported 2.25 million tonnes, generating revenue of US$ 9.75 billion. These figures represent a 4% increase in volume and a 20% rise in foreign exchange revenue. The average price for the year is US$ 4,330, below the US$ 5,670 observed in the same period last year.

The chart below shows Brazilian beef exports from Jan 2019 and Oct 2023. The data is from DataLiner.

Brazilian Beef Exports | Jan 2019 – Oct 2023 | WTMT

Source: DataLiner (click here to request a demo)

Top Beef Importers:

Overall, 72 countries increased their imports while 99 reduced their purchases, according to Abrafrigo.

China remains the primary importer of Brazilian beef, but its purchases were 7.5% lower than in 2022 until November, amounting to 1.15 million tonnes at a rate of US$ 4,790 per ton. Last year, beef sold to the Chinese market yielded US$ 6,510 per ton. Consequently, revenue from the Chinese market this year is 30% lower, totaling US$ 5.23 billion.

The United States solidified its position as the country’s second-largest customer this year, with imported volumes increasing by 68% to 291.1 thousand tonnes. However, revenue only rose by 4.5%, reaching US$ 944.6 million due to lower average prices.

Chile also expanded its imports and secured the third position among the top 20 customers. In 2023, it increased its acquisitions to 92.3 thousand tons (+28.5%), generating revenue of US$ 448.6 million (+24.6%).

In the fourth position, Hong Kong purchased 106.3 thousand tons (+20%) with revenue of US$ 327 million (+5.9%).

The United Arab Emirates climbed to the fifth position, increasing their purchases to 63.9 thousand tons (+12.9%), with revenue of US$ 280.1 million (+8.8%).

Source: Globo Rural

Click here to view the original text in Portuguese: https://globorural.globo.com/pecuaria/boi/noticia/2023/12/carne-bovina-preco-menor-limita-aumento-da-receita-das-exportacoes.ghtml

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