Beef Price in Brazil Reduces Modestly to $4,950 per Ton

Brazil Beef Export Price in December 2022

In December 2022, the beef price stood at $4,950 per ton (FOB, Brazil), with a decrease of -6% against the previous month. In general, the export price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in February 2022 when the average export price increased by 7.2% m-o-m. The export price peaked at $6,855 per ton in June 2022; however, from July 2022 to December 2022, the export prices failed to regain momentum.

Prices varied noticeably by the country of destination: the country with the highest price was Italy ($6,645 per ton), while the average price for exports to Russia ($3,947 per ton) was amongst the lowest.

From January 2022 to December 2022, the most notable rate of growth in terms of prices was recorded for supplies to Hong Kong SAR (+1.9%), while the prices for the other major destinations experienced more modest paces of growth.

Brazil Beef Export Prices by Type

Prices varied noticeably by the product type; the product with the highest price was meat; of bovine animals, carcasses and half-carcasses, fresh or chilled ($10.8 per kg), while the average price for exports of meat; of bovine animals, cuts with bone in (excluding carcasses and half-carcasses), frozen ($3,052 per ton) was amongst the lowest.

From January 2022 to December 2022, the most notable rate of growth in terms of prices was recorded for the following types: meat; of bovine animals, carcasses and half-carcasses, frozen (+15.3%), while the prices for the other products experienced more modest paces of growth.

Brazil Beef Exports

In December 2022, overseas shipments of beef (cattle meat) were finally on the rise to reach 153K tons after three months of decline. In general, exports recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in August 2022 with an increase of 24% month-to-month. As a result, the exports attained the peak of 205K tons. From September 2022 to December 2022, the growth of the exports remained at a lower figure.

In value terms, beef exports reduced modestly to $756M (IndexBox estimates) in December 2022. Overall, exports saw a relatively flat trend pattern. The pace of growth appeared the most rapid in February 2022 when exports increased by 22% against the previous month. Over the period under review, the exports attained the peak figure at 1.3M tons in August 2022; however, from September 2022 to December 2022, the exports failed to regain momentum.

Brazil Beef Exports by Type

Meat; of bovine animals, boneless cuts, frozen (140K tons) was the largest type of beef exported from Brazil, with a 92% share of total exports. Moreover, meat; of bovine animals, boneless cuts, frozen exceeded the volume of the second product type, meat; of bovine animals, boneless cuts, fresh or chilled (12K tons), more than tenfold. Meat; of bovine animals, cuts with bone in (excluding carcasses and half-carcasses), frozen (659 tons) ranked third in terms of total exports with a 0.4% share.

From January 2022 to December 2022, the average monthly rate of growth in terms of the volume of export of meat; of bovine animals, boneless cuts, frozen was relatively modest. With regard to the other exported products, the following average monthly rates of growth were recorded: meat; of bovine animals, boneless cuts, fresh or chilled (+1.9% per month) and meat; of bovine animals, cuts with bone in (excluding carcasses and half-carcasses), frozen (+0.8% per month).

In value terms, meat; of bovine animals, boneless cuts, frozen ($687M) remains the largest type of beef exported from Brazil, comprising 91% of total exports. The second position in the ranking was held by meat; of bovine animals, boneless cuts, fresh or chilled ($66M), with an 8.8% share of total exports. It was followed by meat; of bovine animals, cuts with bone in (excluding carcasses and half-carcasses), frozen, with a 0.3% share.

From January 2022 to December 2022, the average monthly rate of growth in terms of the export volume of meat; of bovine animals, boneless cuts, frozen was relatively modest. With regard to the other exported products, the following average monthly rates of growth were recorded: meat; of bovine animals, boneless cuts, fresh or chilled (+1.6% per month) and meat; of bovine animals, cuts with bone in (excluding carcasses and half-carcasses), frozen (+3.3% per month).

Brazil Beef Exports by Country

China (99K tons) was the main destination for beef exports from Brazil, with a 65% share of total exports. Moreover, beef exports to China exceeded the volume sent to the second major destination, the United States (9.9K tons), tenfold. The third position in this ranking was held by Chile (7.6K tons), with a 5% share.

From January 2022 to December 2022, the average monthly rate of growth in terms of volume to China stood at +5.9%. Exports to the other major destinations recorded the following average monthly rates of exports growth: the United States (-3.6% per month) and Chile (+5.7% per month).

In value terms, China ($490M) remains the key foreign market for beef exports from Brazil, comprising 65% of total exports. The second position in the ranking was held by the United States ($48M), with a 6.4% share of total exports. It was followed by Chile, with a 4.7% share.

From January 2022 to December 2022, the average monthly rate of growth in terms of value to China stood at +3.7%. Exports to the other major destinations recorded the following average monthly rates of exports growth: the United States (-4.3% per month) and Chile (+5.2% per month).

Factors Affecting Beef Prices

Beef prices in Brazil are determined by several factors, including production costs, international market conditions, and domestic economic conditions. Brazilian beef producers have been able to maintain relatively stable prices in recent years despite fluctuations in these underlying factors.

The cost of production is the most important factor in determining the price of beef in Brazil. The cost of feed, labor, and transportation have all been rising in recent years, making it more expensive to produce beef. However, the Brazilian cattle ranchers have become more efficient in their operations, resulting in lower production costs per kilogram of beef. These cost advantages have allowed Brazilian beef producers to remain competitive in global markets.

International market conditions are another important factor influencing beef prices in Brazil. The global demand for beef has been growing steadily in recent years, driven by rising incomes and urbanization in developing countries. This has helped to support higher prices for Brazilian beef exports. In addition, the weaker Brazilian real has made Brazilian beef more affordable for foreign buyers, further boosting demand.

Source: IndexBox Market Intelligence Platform