Safras & Mercado: Brazilian beef exports grew 30% in the first quarter

An unprecedented study by Safras & Mercado shows that the international demand for Brazilian beef grew in the first quarter of 2022 compared to the previous year.

According to the consultancy’s forecast, this upward trend might likely continue in the following months. Brazilian beef exports increased by 30% in the first quarter of 2022 compared to the same period in 2021.

Safras & Mercado disclosed the data last Tuesday (26).

Between January and March 2022, Brazilian beef exports rose for the third consecutive month. Similarly, the sector’s revenue grew in the same period.

In absolute terms, in March alone, Brazilian exporters of animal protein collected more than US$ 1 million.

See below the track record of Brazilian beef exports from January 2020 to February 2022. Data are from DataLiner.

Brazilian beef exports (HS 0202) | January 2020 – February 2022 | TEU

Source: DataLiner (click here to request a demo)

“The dollar price will rise again, which is good for exports. Along with this, we noticed an increase in demand from the United States, where the population consumes a substantial volume of beef”, emphasizes Fernando Iglesias, the chief economist at Safras & Mercado.

“China, which accounts for about half of all Brazilian exports, continues to be a significant demand market. Also, it is safe to say that Brazilian cattle are the most competitive in the world, in addition to having a huge production capacity.”

Demand in Brazil is also growing. According to the consultancy, the increase in demand is linked to a decrease in the price of animal protein as a result of excessive supply on the domestic market in recent months.

The study also shows that cattle slaughter is expected to grow, on average, by 7% in 2022 compared to last year. In March of this year, for example, the number of slaughters exceeded the average and grew by almost 10%, compared to the same month in 2021.

Simultaneously, the price of chicken, a natural meat alternative, will increase in Brazilian marketplaces in 2022.

“Chicken is scoring high prices in all categories in Brazil. We are seeing the cost of the product increase, which makes room for other proteins. Beef, which is in a slight downward price trend, may benefit from this scenario,” says Iglesias.

Source: CNN Brasil

To read the full original article, please go to:

https://www.cnnbrasil.com.br/business/exportacao-de-carne-bovina-cresce-30-no-primeiro-trimestre-mostra-consultoria/

Sharing is caring!