Brazilian Beef Exports Set to Continue Reaching New Highs this August

According to data from Brazil's Ministry of Economy, so far this month (from August 1 through August 22, 2022), Brazilian exports of beef, chilled or frozen, came up to $804 million. Mean daily exports so far remain at a value of $53.6 million. If the trend continues, total Brazilian beef exports for this month would cross above $1.1 billion, which would be a new record high.

The previous record for exports of these products was in July 2022, when exports recorded a value of $1.095 billion. This number represents an increase of 21% YoY, driven mostly by a 20% YoY increase in the average price, as quantity only rose 1% YoY.

The cumulative value of Brazilian beef exports from January through July 2022, and adding exports of beef derivatives, as reported by Brazil's "Associação de Frigoríficos” (ABRAFRIGO), the national association of meat processors, was $7.47 billion, up 47% YoY.

The main destination of Brazilian beef recently has been China. Out of the $7.47 billion of Brazilian beef export value from January to July, $4.46 billion went to China, which reflects an increase of 79% YoY. In terms of volume, it was 655 thousand mt, which represents a 33% YoY increase. In the period, exports to China represented 60% of the total value and 51% of the total volume.

China was followed by the US as the top destination for Brazilian beef. Exports to the US were 116 million mt, up 119% YoY. This came up to $638 million in value, also up by 62% YoY.The US took 9% of Brazil's total beef and derivatives exports in both value and volume.

It's worth noting that, although total Brazilian beef exports to the US from January to July this year represent a record high, exports to the US have been declining consistently since January, according to USDA data.

In January, Brazil exported 28% of the total of US beef and veal imports, but by June that percentage had fallen to only 10% of the total, as other exporters, notably Mexico and Canada, have increased their share. Moreover, exports from Brazil to the US already exceeded a non-tariff quota from "other countries" since earlier in the year, making beef imports from Brazil costlier to US buyers for all the months that followed.

Following the US, the largest destination for Brazilian beef and derivatives exports was Egypt, which experienced the fastest YoY growth among the top three destinations. Exports in Jan-July 2022 to Egypt rose 152% YoY to $301 million and $144% YoY to 78 thousand mt. Egypt's share in these exports are now 4% in value and 6% in volume. Among major importers, Egypt had one of the lowest average prices, at $3.83/kg, representing a discount of 34% compared to the average price among all destinations.

Source: Tridge and ABRAFRIGO

In Jan-July 2022, the largest exporting Brazilian state, in terms of volume, was Sao Paulo, representing 24% of all beef and beef derivatives exports out of the country. It was followed by Mato Grosso, with 20%, Goias, with 12%, Mato Grosso do Sul, with 10%, and Minas Gerais, with 10%.