MercoPress. South Atlantic News Agency

US top leader in revenue from beef exports; Brazil leads in volume

Brazil, on the other hand, exported 1.867 million tons and brought in US$ 9.236 billion, up 9%, including processed and fresh beef.

United States keeps breaking records and slowly taking the global beef exports leadership, at least in terms of revenue according to the latest figures from the US Department of Agriculture, USDA. A situation which is having its impact on Brazil, a longtime top of the list in beef exports.

Even ignoring the 7% drop in volume exported by Brazil between September and mid-December because of China’s ban on beef purchases (two non incidental mad cow cases), from Latin America's largest economy, numbers show that Brazil is still the second-largest exporter.

Selling more expensive meat to markets that pay better is the American recipe for success, considering that at the end of the day, US ships less beef volumes than Brazilian exporters.

Last year, the United States exported 1.440 million tons, up 15% from 2020, with revenue reaching US$ 10.58 billion, up 38% considering only fresh meat.

Brazil, on the other hand, exported 1.867 million tons and brought in US$ 9.236 billion, up 9%, including processed and fresh beef.

USDA data, when compared to Brazil’s 2020, is also revealing, Brazil exported more than 2 billion tons and received US$ 8.4 billion.

In 2021, American meatpackers such as Tyson foods gained more access to China. The Brazilians also gained some leverage after the Phase 1 trade agreement, which eliminated part of the import tariffs from companies like JBS and Mafrig.

Nevertheless China and Hong Kong spend significantly more on US beef than Brazilian beef, but the real comparative advantage is from Japan and South Korea. Korean purchases for example last year increased 14% to US$ 2.382 billion, equivalent to 280,000 tons, plus 38%.

The leading importer, Japan, bought 320.700 tons, up 5%, with revenue reaching US$ 2.376 billion, up 22% from 2020.

Overall and despite some supply problems, USDA stats show that the US is putting up a good fight in the dispute for the global beef exports leadership.

However it must be taken into account that the beef market is currently going through a very strong bullish trend. In effect SAFRAS & Mercado analyst Fernando Henrique Iglesias from Sao Paulo is impressed by the level of prices. “We have to admit that the average beef price is spectacular, and the volume and revenue are also extremely good”.

“The average price paid for the product has increased significantly; China pays some US$ 6,250 a ton, while the average for the other major markets is US$ 4,072. Our impression is that China is trying to fill in the gap that resulted from last year’s embargo” points out Iglesias.

Brazilian beef export revenue in early February was US$ 404,279,552, which is equivalent to 87.2% of the whole of February 2021, while tons shipped reached 73,446 tons, equivalent to 72% for the whole month last year, 102,103,074 tons.