Meat Price in Brazil Falls 7% to $4,057 per Ton After Six Consecutive Months of Decline

Brazil Meat Export Price in December 2022

In December 2022, the meat price amounted to $4,057 per ton (FOB, Brazil), falling by -6.5% against the previous month. In general, the export price continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in February 2022 when the average export price increased by 8.8% against the previous month. The export price peaked at $5,380 per ton in June 2022; however, from July 2022 to December 2022, the export prices remained at a lower figure.

Prices varied noticeably by the country of destination: the country with the highest price was the United States ($4,666 per ton), while the average price for exports to Singapore ($2,745 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 the Philippines (+1.3%), while the prices for the other major destinations experienced more modest paces of growth.

Brazil Meat Export Prices by Type

Prices varied noticeably by the product type; the product with the highest price was lamb and sheep meat ($12.5 per kg), while the average price for exports of pork ($2,554 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: rabbit meat (+21.9%), while the prices for the other products experienced more modest paces of growth.

Brazil Meat Exports

After three months of decline, overseas shipments of meat increased by 6.6% to 244K tons in December 2022. The total export volume increased at an average monthly rate of +1.6% from January 2022 to December 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain months. The pace of growth appeared the most rapid in August 2022 when exports increased by 21% month-to-month. As a result, the exports attained the peak of 303K tons. From September 2022 to December 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, meat exports fell modestly to $988M (IndexBox estimates) in December 2022. Overall, total exports indicated a mild increase from January 2022 to December 2022: its value increased at an average monthly rate of +1.0% over the last eleven-month period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on December 2022 figures, exports decreased by -34.0% against August 2022 indices. The most prominent rate of growth was recorded in February 2022 with an increase of 17% against the previous month. The exports peaked at 1.5M tons in August 2022; however, from September 2022 to December 2022, the exports remained at a lower figure.

Brazil Meat Exports by Type

Beef (cattle meat) (153K tons), pork (91K tons) and lamb and sheep meat (4.7 tons) were the main products of meat exports from Brazil, together comprising 99.9% of total exports. Goat meat and meat of camels and other animals lagged somewhat behind, together accounting for a further less than 0.1%.

From January 2022 to December 2022, the most notable rate of growth in terms of shipments, amongst the major product types, was attained by goat meat (with a CAGR of +15.3%), while the other products experienced more modest paces of growth.

In value terms, beef (cattle meat) ($756M) remains the largest type of meat exported from Brazil, comprising 77% of total exports. The second position in the ranking was held by pork ($232M), with a 23% share of total exports. It was followed by lamb and sheep meat, with less than 0.1% share.

From January 2022 to December 2022, the average monthly rate of growth in terms of the export volume of beef (cattle meat) was relatively modest. With regard to the other exported products, the following average monthly rates of growth were recorded: pork (+4.9% per month) and lamb and sheep meat (-0.2% per month).

Brazil Meat Exports by Country

China (150K tons) was the main destination for meat exports from Brazil, with a 62% share of total exports. Moreover, meat exports to China exceeded the volume sent to the second major destination, Chile (13K tons), more than tenfold. the United States (11K tons) ranked third in terms of total exports with a 4.5% share.

From January 2022 to December 2022, the average monthly growth rate of volume to China totaled +5.6%. Exports to the other major destinations recorded the following average monthly rates of exports growth: Chile (+8.9% per month) and the United States (-3.7% per month).

In value terms, China ($629M) remains the key foreign market for meat exports from Brazil, comprising 64% of total exports. The second position in the ranking was taken by the United States ($51M), with a 5.2% share of total exports. It was followed by Chile, with a 5% share.

From January 2022 to December 2022, the average monthly growth rate of value to China stood at +4.4%. Exports to the other major destinations recorded the following average monthly rates of exports growth: the United States (-4.4% per month) and Chile (+7.5% per month).

Meat Market Overview

Brazil is the world's largest exporter of beef and chicken, and the second largest exporter of pork. The country is also a major player in the global livestock market, with a significant share of the world's beef, poultry, and pork production. A variety of factors have contributed to Brazil's success in the meat industry, including its large population and geographical size, as well as its abundant natural resources.

The Brazilian meat industry is highly efficient and vertically integrated, with large companies owning their own slaughterhouses, processing plants, and distribution networks. This allows them to control the quality of their products and keep costs low.

The Brazilian government has been supportive of the meat industry, providing subsidies and tax breaks to encourage growth. This has helped make Brazil one of the most competitive markets in the world.

However, there are some concerns about the sustainability of the Brazilian meat industry. The Amazon rainforest is being cleared at an alarming rate to make way for pastureland, and this is causing environmental damage and contributing to climate change. There are also worries about working conditions in slaughterhouses and processing plants, as well as animal welfare standards.

Source: IndexBox Market Intelligence Platform