Agriculture

The top U.S. leader in beef export earnings; The leader in terms of volume is Brazil – MercoPress

The top U.S. leader in beef export earnings; Brazil is the leader in terms of volume

Saturday, February 19th 2022 – 08:14 UTC


On the other hand, Brazil exported 1.867 million tons and brought in 9.236 billion US dollars, which is 9% more, including processed and fresh beef.

The United States continues to break records and is slowly leading the world in beef exports, at least in terms of revenue, according to the latest data from the US Department of Agriculture, USDA. A situation affecting Brazil, which has long topped the list of beef exports.

Even ignoring Brazil’s 7% drop in exports between September and mid-December due to China’s ban on buying beef (two accidental cases of mad cow disease) from Latin America’s largest economy, figures show that Brazil is still second only to magnitude exporter. .

The American recipe for success is to sell more expensive meat in markets that pay better, given that the U.S. ends up supplying smaller volumes of beef than Brazilian exporters.

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

On the other hand, Brazil exported 1.867 million tons and brought in 9.236 billion US dollars, which is 9% more, including processed and fresh beef.

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

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

Yet China and Hong Kong spend much more on American beef than on Brazilian, but the real comparative advantage is in Japan and South Korea. For example, last year purchases in Korea rose 14% to 2.382 billion US dollars, equivalent to 280 thousand tons plus 38%.

Leading importer Japan bought 320.7 thousand tons, which is 5% more, with revenue of 2.366 billion US dollars, which is 22% more than in 2020.

Overall, despite some supply problems, USDA statistics show that the U.S. is fighting well in the dispute over leadership in world beef exports.

However, it should be borne in mind that the beef market is currently experiencing a very strong bullish trend. In fact, SAFRAS & Mercado analyst Fernando Enrique Iglesias of Sao Paulo is impressed with the price level. “Admittedly, the average price of beef is impressive, and the volume and revenue are also very good.”

“The average price paid for a product has risen significantly; China pays about $ 6,250 per tonne, while the average for other major markets is $ 4,072. It seems that China is trying to fill the gap created by last year’s embargo, “Iglesias said.

Revenue from Brazilian beef exports in early February was $ 404,279,552, equivalent to 87.2% of the total in February 2021, while tons of shipments reached 73,446 tons, equivalent to 72% for the full month last year, 102,074 tone.



https://en.mercopress.com/2022/02/19/us-top-leader-in-revenue-from-beef-exports-brazil-leads-in-volume?utm_source=feed&utm_medium=rss&utm_content=agriculture&utm_campaign=rss The top U.S. leader in beef export earnings; The leader in terms of volume is Brazil – MercoPress

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