MercoPress. South Atlantic News Agency

Chinese economy slower trend impacting the Brazilian beef market

A ton of beef sold to China last year averaged US$ 5,020 while this November the ton price was down to US$ 3.910

The impact of a slower Chinese economy has started to be felt in Brazilian exports of proteins, mainly beef with considerable lower prices. Last November and ahead of the stock storing in China for the coming New Year celebrations next February, Brazilian sales increased 47% and reached 256.000 tons compared to 173.000 in 2022, but the overall revenue only grew from 872,4 million of one billion.

This is because a ton of beef only last year averaged US$ 5,020 a ton while this November the ton price was down to US$ 3.910. Overall in the eleven months of 2023, Brazil exported 2,25 million tons of beef totaling US$ 9,75bn, points out Abrafrigo, the Brazilian association of meat packing plants.

The balance shows 72 countries increased the purchase of Brazilian beef, but 99 decreased them. China remains Brazil's main market but because of a lesser total volume and much lower prices per ton, income was down 30% to the tune of US$ 5,23bn.

Meantime United States consolidated as Brazil's second largest customer so far this year, with a 68% increase in purchases to 291.000 tons, equivalent to US$ 944.6 million because of a lower average ton price.

Chile moved to third position acquiring 92,300 tons, a 28,5% increase while revenue totaled US$ 449 million, up 24,6%. Hong Kong followed with 106.000 tons and US$ 327 million revenue and the United Arab Emirates purchased 63.900 tons and US$ 280 million. Volumes and figures in dollars were supplied by Abrafrigo and Globo Rural.