Brazil Hopeful Global Crisis Will Strengthen the Country’s Beef Industry

    Cattle from Brazil

    Cattle from Brazil Saudi Arabia, Algeria, Egypt and Libya once again stand out among the ten main import markets for Brazilian beef. From January to September this year, four Arab nations consumed over 440,000 tons of beef "made in Brazil".

    "The Arab market is already used to Brazilian beef. We have established a practically unbeatable image in the region. They know of our quality and trustworthiness. Therefore there is no place in the world capable of beating Brazilian beef there," said Roberto Giannetti da Fonseca, president of the Abiec (Brazilian Beef Industry and Exporters Association).

    The executive pointed out that nowadays those who purchase a good part of Brazilian beef are developing nations, emerging markets with buying power. "In these countries the tendency is to continue with strength. The great fight is the access to markets where there is much protectionism like Japan, the United States and Korea," he exemplified.

    In percentages, the Arab countries represent a share of almost 20% of total Brazilian exports that, in the accumulated result for the year, totaled US$ 3.91 billion, a result that is 22% greater than in the first nine months of 2007, US$ 3.2 billion. The volume exported, however, registered a 16% drop in the same comparison, from 1.22 million tons to 1.02 million tons. "Despite the reduction in tonnage, good prices guaranteed growth of 22%," said Fonseca.

    The month of September registered a historic monthly record in Brazilian beef exports, which reached a value of US$ 533.2 million. This value is 52% greater than revenues in September 2007. "It is a historic record for the month. We exceeded September last year both in tonnage and revenues," compared Fonseca.

    The organization believes that Brazilian exports should reach US$ 5.2 billion up to the end of 2008. It has also already disclosed expectations for revenues of US$ 15 billion with beef exports in 2013. "This target is based on facts. Production may grow if we increase productivity, with no need to increase the herd and, mainly, if we reduce the informal and clandestine slaughter, which now represents between 30% and 40% of the approximately 45 million heads slaughtered in the country each year," he said.

    "Our growth will be based on greater productivity, maintenance of emerging markets and winning new importers," he added.

    According to Fonseca, the question of clandestine slaughter should be solved with the support of the Ministry of Agriculture, which is going to tackle the matter heavily, with greater inspection. "We have space to grow very much. The challenge is now more here than in the foreign market. We must focus on integration of the productive chain, better production, competitiveness and formality, together with genetic and sanitary improvement," he pointed out.

    The sector's growth estimate should be disclosed to businessmen and foreign press on October 20th, in Paris, during the Sial, one of the main food and beverage fairs in the world, which takes place every two years in France.

    In Fonseca's evaluation, the global crisis may favor Brazil in the sector. "We are going to grow due to the problems of others," he said. His optimism is justified by the fact that, according to him, if Europe has problems with production of meats, they will surely have to import more.

    "If the crisis is greater the consumption will drop in Europe and the United States. But as it will affect local production, they will have to import more, which may open space for Brazil," he said.

    Anba

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    • Show Comments (2)

    • Frank

      Looser
      Why don,t you go see what your countrys is doing with the rest of the word now and did for many years?
      Don,t you worry ,we gonna see you guys paying for what you did!
      Maybe working down in Mexico!

    • CH.C.

      Therefore there is no place in the world capable of beating Brazilian beef there,
      But havent you said the same for soyabeans ?????
      😀 😉 😀 😉 😀 😉 😀 😉 😀 😉 😀 😉

      About the Brazilian profitability for beef ?????
      Simply the same lies as for soyabeans. Noooooo ?
      Of course….Yesssssssssss !

      – 5 September – Friday

      Margen Closes Plants

      Margen suspended cattle slaughtering operations at 16 plants due to liquidity problems. It has notified 3,500 employees, of its 5,000, that their jobs have been temporarily suspended as well. The Administrative Directors says market conditions are terrible and banks have restricted credit. “We can’t continue operating while losing money every day”, said the Director.
      source: Valor Economico

      – 30 July – Wednesday
      Shortage of Cattle For Slaughter
      Despite reducing production by 20% this semester, meat-packing factories in Mato Grosso are beginning to shutdown their facilities and giving workers forced vacation because of the lack of supply of cattle for slaughter.

      – 22 July – Tuesday
      Cattle Costs Hit Historical Levels
      Data released this Tuesday, 15, from the Center for Advanced Studies and Applied Economics (Cepea) show that the COST of production of cattle has reached a level never before seen. Considering a starting point back in March 2003, the index which measures the costs of production has risen more than 60% as of March this year. In March 2008, the cost of production of cattle – The Total Operating Cost (TOC) – rose 4.04% from February to March and 10.6% for the year.
      From March 2003 through 2008 cattle prices have 27.22% while operational cost have risen 63.19%. In these past five years, mineral supplements, fertilizers, and labor the largest increases, rising 48.25%, 11.97% and 8.58% respectively. Only in the month of March this year, the same items rose 18.42%, 7.57% and 21.89%.
      source: CEPEA/ESALQ

      Looks like the Propaganda and Disinformation Dept at the Planalto Palacio, Brasilia, is again working overtime to make sure lies are published…THEIR WAY !!!!!!!!!!

      And let me keep LAUGHING AND LAUGHING with the statement in the article : ” those who purchase a good part of Brazilian beef are developing nations, emerging markets with buying power. “
      Somewhat funny to include EGYPT !!!!!!!

      Even more laughable they are proud of “”Despite the reduction in tonnage, good prices guaranteed growth of 22%,” said Fonseca.”
      Facts being not only there was a substantial decline in tonnage, but also a substantial decline in profitability as per the above facts
      I stated. High prices is NOT a guarantee of high profits, therefore ” good prices guaranteed growth of 22%,” is meaningless !

      Even more and more laughable ” expectations for revenues of US$ 15 billion with beef exports in 2013. “This target is based on facts.”
      How could anyone take as a fact…the 2013 production and prices ????
      Especially coming from “experts” who could not and cant predict the prices, profitability and production….6 months out !!!!!!!
      Yesssssss….have they predicted the reduction in tonnage and profitability for the first 9 months of 2008 ???????
      Wellllll….simply re-read their rosy outlook in 2007 !!!!!! They too were based on facts !!!!! Smiiiiiiiiiiiles !

      Ohhhh and about your “facts” on Brazilian beef quality, may be they are not so high !
      3 July – Thursday
      Russia Bars Beef Imports From GoiÀƒ¡s
      The discovery of vesicular stomatitis in GoiÀƒ¡s State will cause the band on beef exports to Russia for at least 12 months per contracts between the Russian and Brazilian governments. Russia is the largest importer of beef in the world.

      Hmmmmmm !

      Last but not least, the article states ” The great fight is the access to markets where there is much protectionism like Japan, the United States and Korea,”
      No longer the EU ? smiles
      No longer Russia the world largest importer of beef…..who banned Brazilian beef ??????

      Lets face it……whenever or wherever you cheat…you will be/are banned !

      And you prove you continually cheat whenever and wherever you can when the article states “if we reduce the informal and clandestine slaughter, which now represents between 30% and 40% of the approximately 45 million heads slaughtered in the country each year,”

      And then when there is a ban, Brazilians pretend they have an adequate sanitation control and the ban(s) is/are UNJUSTIFIED AND UNFAIR !!!!!!
      Typically Robin the Crook…..STYLE !!!!!!!!

      Never ever trust what a Brazilian says, pretend or promise…..remain my motto, wether you like or not !!!!!!
      And the importers of Brazilian goods wether it is beef or whatever do the….SAME !!!!!!!!!
      We will continue to judge you on facts as per our own analysis and not as per your own cheatings, lies and hidings !!!!!

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