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December 16, 2019

Brazil's Beef Exports Up 11.3% in 2019 Driven by China Demand

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Brazilian beef exports are on pace to set a new record in 2019. According to the Brazilian Association of Meat Exporting Industries (Abiec), Brazilian beef exports in 2019 could hit 1.83 million tons with a value of US$ 7.5 billion. If this number is confirmed, the volume would be 11.3% greater than last year and the value of the beef exports would be 13.3% greater than last year.

The surge in Brazilian beef exports is being driven by the increased demand for beef from China. China accounts for 24.5% of Brazil's beef exports in 2019. From January through November, Brazil exported 410,444 tons of beef to China, which represented an increase of 39.5% compared to a year earlier. Strong beef prices have added to the value of Brazil's beef exports to China which thus far this year total US$ 2.1 billion or 59.7% more than last year.

Brazil has 37 beef processing facilities that have been approved for exports to China with 9 more facilities expected to be approved in 2020. The president of Abiec is expecting a 13% increase in Brazilian beef exports in 2020 to 2.06 million tons and an increase of 15% in the value of the beef exports to US$ 8.5 billion.

The demand for beef during October, November, and December sent domestic beef prices higher and cattle prices to new record highs. Starting early in 2020, Abiec is expecting a more normal supply and demand scenario and easing beef prices.