Value of Brazil's beef exports continue upward trend

Brazilian Beef Exporters' Association (ABIEC) data shows that the value of Brazil’s beef exports climbed to $4.82 per tonne in January, the highest since June 2023, which represents the sixth monthly increase in a row.

Despite the latest increase, the value of Brazilian beef in international markets remains a long way below the peak of $6.53/t achieved in June 2022.

The volume exported in January was 206,900t, which is fractionally ahead of the 206,614t exported in January last year.

Destinations

China remains the main destination for Brazil’s beef exports in January, accounting for 91,183t. The US is the second-highest export market, albeit a long way back on 18,974t, with the EU third taking 11,605t.

Comparing these with January 2024, China is down over 5,000t from the 96,338t in January 2024.

Beef exports to the US are down almost 2,000t this January from the 20,848t of January 2024, while exports to the EU have jumped in January this year, up 70% from 6,955t a year ago.

European Union

Brazil’s beef sales to the EU had been in slow decline over the past three years.

Looking at European Commission import data, total beef volumes imported from Brazil between January and November 2024 were 79,540t carcase weight equivalent (CWE). This was down on the same period for the previous two years, when volumes were at 86,830t and 86,510t respectively.

EU total beef imports in the year to November 2024 were just under 359,000t, broadly in line with the same period in 2023 and down on the almost 400,000t imported to November 2022.

The UK is the EU’s largest supplier of imported beef, sending 112,000t to November 2024, followed by Brazil.

Argentina is the next-largest, sending 63,200t up to the end of November, followed by Uruguay on just under 42,000t. A number of other countries supplied the balance of just over 62,000t.

Brazil’s cattle price

The price Brazil’s farmers are getting for their cattle has been going the opposite direction from export beef values over recent months.

After climbing steadily to the equivalent of €3.70/kg in the middle of November, it has been a downward trajectory since.

By the start of this week, the value had dropped to the equivalent of €3.20/kg, making Brazil’s cattle price the most competitive among major beef-exporting countries and the equivalent of 40c/kg less than the Australian cattle price.

Over the past decade as the market to China opened up, Brazil and other South American countries focused less on the EU.

The US joined China as an alternative market for South American beef exports in the past two years.

However, China’s beef imports have reached a plateau and the past six months have seen a sustained increase in the price of beef across the EU and UK.

This has had the effect of bringing Europe back into play in a significant way for Brazil and, as doubt grows about the tariff position with US beef imports, the EU could well become an even more attractive option as this year progresses.

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