Friday, December 12, 2014

Beef exports hit record high in the year

The Brazil 2014 should terminate with record exports of beef, but the number will fall short of the $ 8 billion initially forecast by the Brazilian Association of Meat exporting Industry (Abiec). Now, the projection of the entity is that this figure is reached only in 2015, said yesterday the President of Abiec, Antonio Camardelli.
It is estimated that the revenue with external sales of beef this year some $ 7,284 billion, up 8.6% from 2013. By volume, should total 1.580 million tons (whereas meat in natura and industrialized), an increase of 4.45% in comparison to 2013.
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"It has not been possible to reach $ 8 billion," lamented Camardelli yesterday in a meeting with journalists. According to him, the embargoes of China, Iran, Egypt, Saudi Arabia and Japan to beef because of a case of atypical "mad cow" disease in Mato Grosso affected Brazilian exports. The first three countries have removed restrictions on the Brazilian product, and the Abiec expects Saudi Arabia and Japan do the same soon.
With the end of these embargoes, sales should increase next year, evaluates the Abiec. "Certainly we're going to hit this year's revenue in 2015," Camardelli said. The forecast is to reach revenue of $ 8 billion in the next with a volume of 1.7 million tons.
In addition to reopening these markets, the expectation of Abiec is that, finally, the Brazil start to export fresh beef to the United States. Any sales to the United States, however, are not yet considered the estimates for next year, according to Camardelli.
He stated that "all political indicative support opening the American market to Brazilian product. Noted that risk analysis of Brazilian beef has been terminated in the US and that there is no more discussion about the process. In addition, the economic impact to the u.s. market-opening the product is less than 1%, according to him. The Brazil must have a quota of 64 thousand tons a year for export, mainly of meat intended for the production of processed products.
If there's optimism with the USA, the same does not occur in relation to Russia, which is on the brink of recession after economic sanctions of the UNITED STATES, European Union, Canada and Australia as a result of the geopolitical crisis in Ukraine and the sharp drop of international oil prices.
Questioned, Camardelli admitted that there should be a drop in Brazilian shipments of beef to Russia, which is the second biggest customer in the country. He also said that it is necessary to be attentive to what will happen to the Russian demand when its political issues are resolved with the West. In retaliation to sanctions from the West, Russia has enabled more refrigerators Brazilians to export.
The Abiec also presented yesterday its expectations for the slaughter of cattle in the country in 2015. Using Agroconsult projections indicated that the slaughter must leave 42.44 million heads in 2014 to 42.83 million next year. The figures include formal and informal logging. Fernando Sampaio, the Abiec, said that there should be increasing the average weight of the animals. This year, the culls have fallen compared to 43.09 million 2013, reflecting the smaller supply of animals.
Valor Economico
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