Brazilian Beef Industry Sees Record Exports Despite Price Decrease

Feb, 09, 2024 Posted by Gabriel Malheiros

Week 202406

The Brazilian Association of Meatpackers (Abrafrigo) reported a 28% increase in total beef exports from Brazil in January 2024 due to falling prices in the international market. According to the association, the average prices of these products dropped by 14.16% in the first month of the year.

The average prices decreased from $4,630 per ton in January 2023 to $3,954 per ton in January 2024, marking a total revenue of $930.6 million for the month compared to $851.1 million in January of the previous year, reflecting a growth of 9.3%.

The volume of exports nearly doubled in January. According to data from the Foreign Trade Secretariat (Secex) of the Ministry of Development, Industry, Trade, and Services (MDIC), compiled by Abrafrigo, the movement increased from 183,817 tons in 2023 to 235,341 tons in the first month of 2024.

The chart below shows beef exports through Brazilian ports between Jan 2020 and Dec 2023. The data is from DataLiner.

Brazilian Beef Exports | Jan 2020 – Dec 2023 | Teus

Source: DataLiner (click here to request a demo)

China Remains at the Helm

China continues to be the primary buyer of Brazilian beef. However, it imported 3.1% less in January 2024. During the month, 97,056 tons were shipped, compared to 100,164 tons in the same month of the previous year.

This translates to a decrease in revenue from $485.3 million last year to $427.4 million in 2024 (-11.9%).

The United States emerged as the second-largest importer of Brazilian beef in January. However, prices paid for the products dropped significantly.

In January of the previous year, Americans paid $5,214 per ton of Brazilian beef, while this year, the price plummeted by 43.3% to $2,957 per ton.

However, in terms of volume, purchases more than doubled, rising from 15,296 tons in the first month of 2023 to 49,850 tons in the same month of 2024, marking a 225.9% increase and resulting in revenue of $147.4 million in 2024, an 84.8% growth.

Another highlight, according to Abrafrigo, was the significant growth in volume demanded by the United Arab Emirates, ranking third among the largest importers.

In January 2023, they imported 2,880 tons, increasing purchases to 11,805 tons in 2024, a 309.9% increase compared to the same month of the previous year. Revenue surged from $13.35 million to $54.52 million, representing a 308.3% growth.

Overall, 67 countries increased their acquisitions, while 56 others reduced purchases in January.

Source: CNN Brasil

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