Brasília – The year of 2011 shows all signs of being good for the beef sector in the country, according to figures disclosed on Thursday (10) by the National Confederation of Agriculture and Livestock (CNA). The forecast of the Permanent Forum for Beef Livestock at the organisation is that beef exports should total 2 million tonnes this year, growth of 25% over 2010, when shipments totalled 1.6 million tonnes. Apart from that, the arroba (14 kilograms) of cattle has reached its peak price, traded at over 100 Brazilian reals (US$ 60) at the BM&F BOVESPA (the Securities, Commodities and Futures Exchange).
The European Union has slowly been returning to raw beef purchases, after the product suffered an embargo in early 2008, due to problems in the Brazilian beef cattle tracking and tracing system. The drastic reduction in exports to the EU, however, are being compensated by markets that buy cheaper meats, like Russia, Hong Kong and countries in the Middle East. Thus, last year, Brazil managed to sell US$ 3.86 billion in raw beef, growth of 27% over 2009.
Although production costs rose approximately 21%, the price per kilogram of beef has appreciated 40%, recovering the producer’s profit margin.
To improve the Brazilian productive sector’s image, which has suffered in some markets, mainly in Oceania and Asia, closed to Brazilian raw beef due to areas in the country that are not globally recognised as free of foot and mouth disease through vaccination, sector representatives are betting on the International Beef Congress, scheduled to take place on June 8th and 9th, in Campo Grande, Mato Grosso do Sul.
Last week, the state, the second main Brazilian producer of beef, was granted the status of free from foot and mouth disease through vaccination by the World Organisation for Animal Health (OIE), considering the border area with Paraguay and Bolivia, the only area in the state that had not yet been considered free of the disease. During the international congress, the participants should have the chance to visit farms and learn about cattle farming in the country.
*Translated by Mark Ament
