Brazilian Beef Faces Drop in Global Market Value
From January to May 2022, Brazilian beef exports earned US$8.8 billion, according to the country’s Association of Meat Packers (ABIEC).
In 2023, this fell to US$6.7 billion. Each ton sold for an average of US$4,200 this year.
Two main factors are driving this decline. One is higher beef production in Brazil. The other is a unique mad cow disease case in Pará state.
The sick cow was found on a Marabá farm. An agreement with China requires Brazil to stop beef exports when mad cow is suspected.
China alone decides when to resume trade.
This policy aims to prevent the disease from spreading. The cow in Brazil had a unique, non-spreading form of the illness.
It’s similar to how Alzheimer’s occurs in people.
The World Animal Health Organization (WOHA) closed the case quickly. It took a month for Brazil to get China to restart imports.
China is a major buyer of Brazilian beef.
From January to August 2023, China imported US$3.5 billion of beef from Brazil. This is a 34% fall compared to the same months in 2022.
Background
This drop in beef value is significant for Brazil’s economy. The country is one of the world’s biggest beef exporters.
It especially hits hard at local producers and meat-packing companies. Lower revenue could lead to job cuts and less investment in the sector.
China’s role as a key buyer is crucial. Their policies can make or break the Brazilian beef market.
The mad cow incident shows how sensitive this relationship is. A single case led to a month-long export halt.
In Brazil, beef production is a complex issue. It often faces criticism for deforestation and environmental harm.
Balancing sustainability and profit is a big challenge.
The mad cow case also raises questions about disease management. Quick, transparent action is essential for maintaining trust.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.52%
205,835.29
-0.52%
65,246.95
+0.42%
11,164.13
+0.36%
2,896,853
+0.95%
2,589.04
+0.25%
60,220.93
+0.91%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 205,835.29 | -0.52% | +21.85% | 206,911.89 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief