Brazil Emerges as Major Force in Global Meat
Markets
Constanza
Valdes
Since 2004, Brazil has been the
world’s largest beef and poultry exporter
and fourth-largest pork exporter, with total meat
sales generating over US$8 billion in 2005. Exports
have been driven by the combination of rising incomes
in many parts of the world and Brazil’s ready
availability of land and feed resources to support
meat production.
Brazil achieved this position
over the past decade as Brazilian agriculture benefited
from macroeconomic stability, high international
commodity prices, currency devaluations, technological
advancements, expansion in arable land, and large
capital inflows from domestic and direct foreign
investment. Domestic policies (credit and tax-exemption
programs) also spurred production and processors’
incentives.
Brazil’s poultry meat exports
account for 41 percent of global trade. More than
two-thirds of exports are frozen chicken parts,
29 percent are whole frozen chickens, and 3 percent
are prepared or preserved. Export destinations include
the EU-25, Middle Eastern countries, Japan, Russia,
and Hong Kong.
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Brazil is now the world’s
largest beef-exporting country by volume (second
largest by value, behind Australia). The presence
of foot-and-mouth disease (FMD) in the country,
sanitary problems associated with cattle slaughter,
and sales of lower value cuts account for Brazil’s
lagging in export value (per ton) relative to exporters
from North America and Oceania. FMD also prevents
Brazilian exports of fresh, chilled, and frozen
beef to important North American markets—the
U.S., Canada, and Mexico—as well as Japan,
South Korea, and Taiwan. Chilled, fresh, and frozen
exports account for just over 80 percent of Brazil’s
beef trade and prepared/preserved beef accounts
for nearly 20 percent. Major markets for Brazil’s
beef exports include the EU-25, Russia, and Chile,
while the EU and the U.S. accept processed beef.
Brazil is the world’s third
largest pork exporter, accounting for 15 percent
of global pork trade. Pork exports are largely frozen
cuts, and Russia is the primary market (65 percent
in 2005). Other export destinations are Hong Kong,
Ukraine, and Argentina.
Despite a new outbreak of FMD
in 2005 that led several countries to ban meat imports
from regions affected by the disease, Brazil will
remain a significant player in world meat markets.
Future increases in meat exports and greater access
to the global market will depend on the success
of current efforts to improve its disease status
and Brazil’s ability to implement and maintain
sanitary controls.
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