MercoPress. South Atlantic News Agency

Brazil export beef ton average price soars 50% in 12 months

During January to August 2008, Brazilian beef exports fell 22% year-on-year to 711,716 tonnes swt, while revenue was up 18% as average export prices increased 50% to 3818 US dollars ton swt.

Exports have been affected by an appreciating local currency (which has increased 22% against the US dollar year-on-year), low supplies (cattle prices have increased 70% to US362¢/kg cwt last week in Sao Paulo) and higher prices in the domestic market. In August, beef exports totaled 96,079 tonnes swt, down 13% year-on-year, while average prices reached a record 4,341 US dollars ton swt, up 57% on August 2007. It is expected that exports will remain low during 2008, as cattle prices are not forecast to decrease until 2010, beef production is expected to fall 5% this year, and the Brazilian Central Bank has raised the basic interest cash rate to 13% p.a. (with further increases expected until 2009) adding pressure to the appreciation of the local currency, Real.