Brazil’s beef export volume down in July, but revenues exceed US$1 billion for first time

RIO DE JANEIRO, BRAZIL – Brazilian beef exports fell 1% in volume in July compared to the same period last year, but for the first time in history monthly revenues exceeded US$1 billion, said on Thursday the Brazilian Association of Meatpacking Companies (ABRAFRIGO).

According to Ministry of Economy data compiled by the entity, which takes into account both fresh and processed products, shipments totaled 192,544 tons last month, with revenues of US$1.011 billion.

The revenue obtained with the protein’s exports represented a jump of 30% over the same month last year, the association said in a statement.

The increase in revenue reflects a trend also seen in the accumulated figures for 2021. In the first 7 months of the year, the export volume fell 3% compared to the same period in 2020, to 1,072,551 tons, but the exchange balance increased 9% to US$5.096 billion, according to ABRAFRIGO.

“China, with its imports across the mainland and through Hong Kong, remains the main customer of Brazilian beef, with a slight drop in the year,” the association said, adding that the Asian country imported 630,552 tons in the year through July, compared to 634,138 tons in the first 7 months of 2020.

Considering last month alone, Chinese purchases dropped 4% year-on-year, to 110,637 tons.

“The United States has been gradually increasing its purchases and is now the second largest customer of the Brazilian product, with 52,962 tons imported from January through July (4.9% of total exports), a 93.2% growth over the same period in 2020,” ABRAFRIGO added.

The revenue obtained with shipments to North America more than doubled in the accumulated for the year, to US$393.8 million. Until the start of last year, the USA maintained an embargo on fresh beef from Brazil. The market was reopened only in February 2020, after a three-year suspension.

The list of the largest buyers of Brazilian beef also includes Chile (48,832 tons purchased in the year, up 22.9%), Egypt (32,932 tons, down 56.3%), and the Philippines (32,642 tons, up 54.3%), ABRAFRIGO added.