BRAZIL

ABIEC: Beef exports are expected to set a US $ 8 billion record

Beef

The aftershocks caused by the pandemic in the world markets did not affect the  Brazilian beef exports  . On the contrary, the crisis acted as a lever for business and paved the way for new and future buyers. Beef landings   abroad are expected to surpass this year's US $ 8 billion record this year.

Posted on Nov 06 ,07:27

ABIEC: Beef exports are expected to set a US $ 8 billion record

"There are negotiations on the part of the Ministry of Agriculture,  livestock  and Supply with countries that represent a large volume of purchases and that are anxious for the   Brazilian BEEF , such as Japan, Canada and Taiwan", says Antônio Jorge Camardelli, president of  the Brazilian Association of Industries Industrialized Meat Exporters  ( ABIEC ).

The performance expected for the year is encouraging, and should set a record in shipments, predicts the executive. "The expectation is that the volume will reach 2 million tons", he says. Last year, there was a 15.5% jump in revenue when it hit US $ 7.59 billion, with a total exported of 1.84 million tons, an increase of 12.4%.

In the first nine months, sales of fresh and processed meat grew 19.7% in revenue and 11% in volume compared to the same period last year, that is, US $ 6.1 billion and 1.460 million tons, respectively. The data are from the Foreign Trade Secretariat (Secex) compiled by  ABIEC . "China continues to pull purchases, with 57.4% of the total exported, but other markets also register an increase in demand, such as Egypt, Chile, Russia, the United States and the Philippines."

Brazil is prepared to meet future demands, which will come in the post-pandemic. "Countries that have the most organized chains, like Brazil, will have the chance to increase their participation in global markets."

Marfrig believes that the market will be increasingly eager for the Brazilian product and that the impacts of the pandemic were “positive for the company”. In the first half, the company recorded a historic performance, with net revenue of R $ 32.3 billion and net profit of R $ 2.16 billion. “This represents an increase of 48% in sales and 400% in the result compared to the same period in 2019”, explains Alisson Navarro, director of exports of Marfrig to Latin America.

The explanation for this leap is understandable, says the executive: when the covid 19 arrived in Brazil, the Asian market was practically returning to normal, while the Brazilian domestic market showed an expressive growth of the disease, with the migration of the food service to retail. To all this, add the dollar pricing as of the second quarter.

"The impacts of the pandemic on Marfrig's meat production and export sector were positive, and the third quarter also had an excellent performance, with even greater demand from the international market, exceeding the Brazilian offer," he says. According to the executive, starting in the coming weeks, the availability of cattle ready for slaughter should improve with the arrival of animals fattened in the intensive confinement system.

The slaughtering, in fact, decreased by 8% in the second quarter compared to the same interval in 2019, accounting for 7.301 million head, according to a survey by the Brazilian Institute of Geography and Statistics (IBGE). From January to March there was a slight increase of 0.3%. It was the worst result for a second quarter since 2011 caused, in large part, by the negative effects of the pandemic on the consumption of higher value cuts.

For Navarro, opportunities in the international market have grown rapidly in the last two years and already show a relevant participation of the USA. "It is a market in which we have a better margin than in others," he says. Exports, he says, revolve around 70% of the revenue and the demand for food continues with a strong tendency to increase in this last quarter, remembering the conquest of the European and Thai markets, among others.

In the first semester, Brazil received approval from Thailand to export  beef  with bone, boneless and giblets. Initially, five refrigerators were enabled for shipments.

The time is also favorable for the export of  BOVINE MEAT  from Minerva Foods. Between April and June, gross export revenue reached R $ 3.3 billion, an increase of 16.1% in the annual comparison. For the president of the company, Fernando Galletti, the good performance was obtained despite the impacts of the covid-19. The market's behavior, he explains, was much more “volatile” in this period, requiring agility from executives. It was the best second quarter in the company's history.

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