Brazilian Beef Industry Has Plans to Weather the Crisis

    Brazilian slaughterhouse

    Brazilian slaughterhouse Beef exports by Brazil, from January to November, totaled US$ 5 billion, representing growth of 22.3% compared with the same period of last year. In terms of volume, however, shipments saw a decrease of 14.4%, having totaled 1.29 million tons.

    "We are very much dependent on Russia, which is being seriously affected by the crisis and is undergoing credit-related problems," stated the president at the Brazilian Beef Industry and Exporters Association (Abiec), Roberto Gianetti da Fonseca.

    The Russian market, which answers to 38% of foreign sales of the Brazilian product, is the leading export destination. From January to November, Brazil exported the equivalent to US$ 1.4 billion to that country. Shipments totaled 371,960 tons during the period. According to Fonseca, in the face of the crisis, the organization's strategy consists of diversifying its markets.

    The growth of exports, in terms of value, according to Fonseca, is a result of the 40% increase in international meat prices. The president at Abiec estimates that foreign sales should be between US$ 5.3 billion and US$ 5.4 billion in December, and the volume should be between 1.3 million tons and 1.35 million tons. "The year of 2008 was a memorable one. It was positive," he said.

    In 2009, the Abiec expects to maintain the shipped volume and export figures achieved this year. According to Fonseca, the price of beef should fall, because there is great supply and little demand. "We are already renegotiating prices," he said.

    The president also stated that next year the organization is going to work in order to double its sales to the European Union, which embargoed Brazilian beef this year, prompting a decrease in exports to the region.

    With regard to the crisis, Fonseca stated that Brazil has to face it with courage, creativity and daringness. "The beef industry is not going to be as affected as other industries of animal origin (such as chicken and pork)," he said.

    According to him, the beef industry should be the least affected, because it is able to adjust itself to the supply. "Whenever there is an excess supply, we leave the cattle on the pasture for a while longer, at not that high a cost (compared with other sectors)," he stated.

    Last month, Brazilian beef exports decreased by 34.4% in shipped volume, which totaled 83,430 tons, as against 127,200 tons in November 2007. Foreign sales totaled US$ 335.72 million, representing a reduction of 13.8% compared with the same month of last year.

    "This was the first month in many years in which there was a reduction in value compared with the same month of the previous year," said Fonseca, who attributed the 76.8% decrease in volume and 69.5% decrease in export value to Russia.

    In November, the leading buyer of the Brazilian product was Venezuela, followed by Russia, Iran, Hong Kong and Egypt. According to Fonseca, Venezuela and Iran are great potential buyers of Brazilian beef. "Those are oil producer countries," he said.

    Anba

    Tags:

    • Show Comments (1)

    • ch.c.

      “Those are oil producer countries,” he said.
      TRUE !
      But…but….less than RUSSIA !

      Thus you can see what is going to happen with your beef exports to oil producing countries !

      πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian Doctor Arrested in the US After Illegal and Fatal Liposuction

    Brazilian Luiz Carlos Ribeiro, 49, a native of Brazil, and his wife Maria Miranda ...

    The Art of Money

    The next act is the presentation of the new, amended bill. It is still ...

    Temps for Hire

    While in the U.S. payroll costs to employers are 9% over the cost of ...

    Brazil: There Was Never a Black Like Zumbi

    November 20 has been National Black Awareness Day (Dia Nacional da ConsciΓͺncia Negra) in ...

    Emporium of the Narghile in Brazil

    Brazilians Fall in Love with Narghiles

    About four years ago, Nizar Escandar, a grandson to Syrians, established EmpΓ³rio do Arguile ...

    Benchmark Rate Goes Up 8th Time in a Row in Brazil

    Latin American equities leapt on the session, although trading was somewhat lighter, as Brazilian ...

    Brazil Convenes US and EU in Effort to Rescue WTO Talks

    Brazil will be hosting this weekend a high level meeting in an attempt to ...

    Brazilian cachaça for export

    Brazil Exports Reach US$ 66 Billion in 2007, a 20% Growth

    The Brazilian trade balance surplus (exports minus imports) in the first 114 working days ...

    TV Channel Futura

    A Brazilian TV Show Brings Together Youths from All Over the World

    "Letters in the Wind," a cultural TV show from Brazil, aims to create an ...