High Demand From China for Protein Led Brazilian Beef Exports to Set a Record, Especially Making the State of Mato Grosso the Leader in Foreign Trade Exports

Written by Bruno Teles

Published on 18/01/2023 at 19:43

Alta demanda da China pela proteína, fez exportação de carne bovina brasileira bateu recorde, o que fez, em especial, o estado do Mato Grosso, liderar o ranking das exportações no comércio exterior (Foto/divulgação)

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Changing Eating Habits Seem to Be One of the Main Reasons Why Beef Exports from Mato Grosso Reached a Record in 2022, According to Data Released by the Secretariat of Foreign Trade (Secex).

In carcass (TEC), the state exported the largest volume in its historical series, with 605,44 thousand tons sent abroad. Only from January to April last year, the state totaled 185 thousand tons exported, with a total revenue of US$790 million.

With an increase of more than 5% last year, the revenue reached around US$2.75 billion. In 2021, the shipment recorded 443.16 thousand tons and revenue of about US$2 billion. This is a growth of 37.8% compared to 2021. The state of Mato Grosso has over four hundred properties fully compliant with the current export policies in foreign trade.

China was the largest importer, buying 99,744 tons on its own. Together with Hong Kong, this accounted for 53.32% of the total volume exported during the year, representing an increase of 15.37% when comparing the years 2021 and 2022. One country that surprised in beef demand, which also explains the increase in Brazilian beef exports, Egypt increased its imports of the protein by approximately 600% during the same period. The United States and Chile occupied the 2^a and 3^a positions in the ranking of Brazilian exports.

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There was strong pressure on the prices of fat cattle, which recorded a drop of 3.9% in the annual comparison, which, although considered a milestone for beef export in Brazil, did not prevent the country from hitting a record in 2022, exporting 25.23% more than it did in 2021. It is believed that, regarding the slaughter of cattle in Mato Grosso, with a higher culling of females, there was a reduction in prices, reflecting the shift in the livestock cycle, which was 13.9% higher than in 2021.

There was also a retention of breeding stock in 2021. This caused the supply in 2022 to increase, which reflects in the prices, causing them to decline, especially for replacement animals. There was a recorded drop for most categories; heifers, for example, were quoted at R$ 1,887.72 per head last year, a reduction of 15.8% compared to 2021.

These and other figures were released by the Mato Grosso Institute of Agricultural Economics (Imea) last Monday (16), in the Weekly Bulletin of Cattle Farming.

From January to December, the country exported 1.996 million tons of in natura beef, almost 30% more than in 2021. A record that surpassed the high number from 2020, which was 1.75 million tons. The total Brazilian revenue was US$ 13.091 billion, involving 2,344,736 tons. For 2023, there is no expectation that the numbers will be repeated, including regarding prices, as in recent months, the Brazilian and Chinese markets have gone through intense renegotiation, and the Brazilian product showed declines of more than 10% in average values.

High Demand From China for Protein Led Brazilian Beef Exports to Set a Record, Especially Making the State of Mato Grosso the Leader in Foreign Trade Exports

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