Brazil Sees Record Live Cattle Exports in August, Driven by Rising Demand and Competitive Prices

With a favorable environment marked by competitive prices, a favorable exchange rate, and growing demand, Brazil recorded its highest volume of live cattle exports in six years in August 2024. According to Agrifatto, based on data from the Foreign Trade Secretariat (Secex), 135,010 head of cattle were exported that month, representing a 12.96% increase compared to the previous month and the most significant volume recorded since September 2018.

From January to August 2024, total exports reached 592,820 head, exceeding the total exported throughout 2023 by 1.8%. This volume generated revenue of $480.44 million, with an average price of $810.44 per head, equivalent to R$4,234 per animal. “This significant increase reinforces the competitiveness of Brazilian cattle in the international market,” the consultancy noted.

Profitability in Pará

The state of Pará has established itself as the country’s leading exporter of live cattle, accounting for over 50% of national exports.

“The state became Brazil’s largest exporter of live cattle in 2023, responsible for 40.62% of the 582,300 cattle exported last year. By July this year, Pará accounted for 51.41% of live cattle exports, with 238,582 head shipped,” according to data released by the Confina Brasil team.

In terms of selling prices for the foreign market, these are significantly higher than those in the domestic market. “The selling price abroad is 53% higher than the value of lean cattle traded in Pará, which is around R$2,800 per head,” highlights Agrifatto.

Although export operational costs are high, the market appears promising, especially for regions like Pará. The consultancy added, “It’s important to observe market behavior, as distortions can create new business opportunities for producers. “

To meet this high demand, several large feedlots in the state operate as pre-embarkation stations (EPEs), where animals undergo a quarantine period and are monitored for health and weight.

Middle East Dominates Purchases

The primary destination for Brazilian exports remains the Middle East, accounting for over 90% of total live cattle purchases from Brazil. Countries such as Iraq, Turkey, Egypt, Lebanon, and Saudi Arabia are among the largest buyers.

This increasing demand from the Middle East reflects the rise in beef consumption in the region, along with cultural and religious preferences that favor the purchase of live animals for slaughter by Islamic principles.

Future Prospects for Live Cattle Exports

With four months remaining in 2024, Brazil has already recorded the highest volume of live cattle exports since 2018. The trend is expected to continue, with the possibility of setting new records by year-end. For the Brazilian livestock sector, this increase represents a market opportunity and an incentive for states like Pará to expand their productive and logistical capacities.

With positive expectations for the exchange rate and external demand, Brazil is firmly positioning itself as one of the world’s leading suppliers of live cattle, solidifying its relevance in the global agribusiness landscape.

Source: Compre Rural

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