Brazilian Beef Export Volume Surges While Revenue Declines

Brazilian beef exports continue to face a downturn as revenue dropped for the fourth consecutive month in May. According to the Brazilian Meatpacking Association (ABRAFRIGO), government data revealed that revenues obtained in May 2023 amounted to US$ 965.2 million, representing an 11% decline compared to the US$ 1.086 billion recorded in May 2022.

Despite this decline in revenue, the volume of beef exported in May witnessed an 11% increase, reaching 200,849 tonnes compared to 180,387 tonnes in May 2022. However, the average selling price per ton saw a substantial decrease of 20.3%, plummeting from US$ 6,030 to US$ 4,805.

See below the volume, in tonnes, of Brazilian beef exported through maritime means between Jan 2019 and Apr 2023, according to data gathered by Datamar’s business intelligence team.

Beef exports from Brazil | Jan 2019 – Apr 2023 | WTMT

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YTD

Cumulative revenue in the first five months of the year experienced an even greater decline of 24% compared to the same period in 2022. Exports from Jan to May amounted to US$ 3.847 billion, while they totaled US$ 5.086 billion during the corresponding period last year.

In addition to the revenue drop, export volumes also fell by 8% in the same comparison, amounting to 840,419 tonnes. Consequently, the average price per ton for the first five months of 2023 stood at US$ 4,578, down from US$ 5,593 during the same period last year.

China remains the primary buyer of Brazilian beef, with May showing a significant increase in imports from the Asian country. China imported 112,338 tonnes of beef in May, a notable surge from the previous month’s 40,909 tonnes. From January to May, Chinese imports reached 381,447 tonnes, accounting for 45.4% of the total, with revenue totaling US$ 1.911 billion, representing 49.7% of the total revenue.

However, it is worth noting that revenue from sales to China during the same period last year was much higher, reaching US$ 2.922 billion, with 440,043 tonnes of beef shipped. The decline in 2023 is attributed to the suspension of Chinese purchases due to the atypical case of ‘mad cow disease’ detected in Pará.

The United States maintains its position as the second-largest customer of Brazilian beef, having purchased 93,307 tonnes in the first five months of 2023, a 3% increase compared to the same period in 2022. However, revenue from these purchases amounted to US$ 413 million, indicating a decline of 17.3% based on the survey results.

Source: Globo Rural

To read the original news report, see: https://globorural.globo.com/pecuaria/boi/noticia/2023/06/brasil-embarcou-mais-e-faturou-menos-com-exportacoes-de-carne-bovina-em-maio.ghtml