Brazil’s beef exports fall in first half of 2023 over weak demand in China

Brazil’s beef exports fell in the first half of 2023 due to weaker demand from China and lower prices paid for the product. China is responsible for almost 50% of the sector’s imports and will also be decisive for a possible recovery in results by the end of the year.

Data from the federal government, compiled by the Brazilian Association of Meatpackers (Abrafrigo) and recently released, showed that Brazil’s external sales of beef (both raw and processed) reached 1.076 million tonnes between January and June, recording a slight 1% drop compared to the same period last year. Revenue also fell, more significantly, with a decrease of 21% in the period, totaling US$ 4.937 billion.

The chart below displays Brazil’s exports of beef to China measured in tonnes in the period between January 2019 and May 2023. The data is from DataLiner

Beef exports to China | Jan 2019 – May 2023 | WTMT

Source: DataLiner (click here to request a demo)

The revenue result was influenced by the lower value paid for beef in the international market and the weakening Chinese demand. These factors negatively impacted Brazilian exports. Brazil is closely monitoring the evolution of the Chinese market and is expecting a possible resumption in beef sales in the coming months, but this will depend on the dynamics and demands of the Chinese market.

Values

According to Abrafrigo, the drop in Brazilian beef exports in the first half of this year was strongly influenced by average prices, which fell from US$ 5,740 per ton in the first half of 2022 to US$ 4,585 in the first half of this year, a 20% decrease.

The entity stressed that the fall in purchasing power of consumers in China and the high levels of stock led Chinese importers to pressure reductions in meat prices. In the first half of this year, Brazilian shipments of protein to China fell 4.6% in volume and 29% in revenue compared to the same period in 2022. Also, 518,350 tonnes were sent to China, generating US$ 2.612 billion in revenue.

Source: Jornal Opção

To read the original report, see: https://www.jornalopcao.com.br/economia/exportacoes-de-carne-caem-por-conta-de-baixa-demanda-da-china-510532/

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