Brazilian beef exports are expected to grow in H2
In June, Brazil decided to suspend its beef exports to China due to an atypical case of bovine spongiform encephalopathy (BSE) discovered in the herd. Nevertheless, the disruption in trade didn't affect the unprecedented figures reported in the last 12 months: 1.50 million tonnes of beef, up 24% year-on-year. Currently, the South American country is the world's largest beef exporter and the volumes shipped abroad are expected to rise in the second half of 2019, according to an analysis from Meat and Livestock Australia. "In the first half of 2019, Brazilian beef exports, at 684,000 tonnes swt, were just shy where they peaked over the same period in 2007. Furthermore, Brazil typically exports a greater volume in the second half of the year – 12% more on average over the last 15 years – and this is expected to remain the case over the coming six months, further ratcheting up the competition," believe the analysts.
Asia is one of the regions that Brazil is focusing on for the next years as the demand for animal protein is increasing in this part of the world. "Asia has become increasingly important to Brazil’s export footprint, increasing from a 12% export share a decade ago to 45% over the last twelve months. While China and Hong Kong have received the lion’s share of this export pivot, other Asian markets have also increased in size. Most notably, exports to the Philippines have increased four-fold ( predominantly frozen manufacturing beef) while shipments to Singapore and Malaysia have expanded 29% and 78% year-on-year, respectively, over the last twelve months", explained the analysts.
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