Brazilian beef exports down 18% in May

RIO DE JANEIRO, BRAZIL – There was a drop in sales to China, Brazil’s agribusiness largest client. The data are from the Brazilian Association of Meat Exporting Industries (ABIEC) and the Brazilian Association of Meatpacking Companies (ABRAFRIGO).

Brazil’s beef exports dropped 18% in May compared to the same period last year, which led the accumulated shipment in 2021 to revert into negative territory, data from ABIEC and ABRAFRIGO showed last Tuesday, June 8.

According to federal government data collected by ABIEC, beef shipments (fresh and processed) totaled 149,800 tons last month. Revenue reached US$725.2 million (about R$3.6 billion), a 7% drop in the annual comparison.

Consequently, the accumulated from January to May reached 710,093 tons exported, a decrease of 2.9% compared to the first five months of 2020, reported the association.

On the other hand, revenues still show an increase of 2.2% in the same comparison basis, to US$3.2 billion (R$16.1 billion).

ABRAFRIGO detailed that the weaker volumes in May were driven by a reduction in shipments to China, Brazil’s main customer for beef.

The Asian country, through the mainland and the city-state of Hong Kong, imported 87,231 tons of the protein in May, compared to 118,000 tons in the same month last year, said ABRAFRIGO also based on federal government data.

Year-to-date Chinese purchases reached 418,160 tons, up slightly from the 413,648 tons recorded between January and May 2020, added ABRAFRIGO.

The meatpackers’ association also highlighted a gradual increase in purchases of Brazilian beef by the United States, which became the product’s second largest importer. The Americans purchased 10,691 tons in May, which raised the accumulated in the year to 33,700 tons.

“U.S. purchases are 165.8% higher than in 2020 and the revenue obtained grew 149.4%,” ABRAFRIGO said, adding that Chile completes the podium of Brazil’s main clients in the sector, with 32,600 tons imported through May, up 7.8%.

Source: G1