12/11/2007 15h47

Brazilians have 52% of the beef market

Folha de S. Paulo - 12/11/2007

The advance of the Brazilian slaughterhouses over other countries already gives the Brazilian beef companies 52% of participation in the world exportations of the product. The international volume of traded beef is 7.1 million tons a year. From that volume, 33% is from Brazil. The participation of the Brazilian slaughterhouses in companies from Argentina, Paraguay, Uruguay, Chile, United States, Australia, and most recently in Italy, increases the percentage to 52%. Marcus Vinicius Pratini de Moraes, president of the Abiec (Brazilian Beef Export Industries Association), says "the Brazilian experience is spreading throughout the world". This year, the Brazilian beef exportations, in product, should amount to 1.6 million tons, in the value of US$ 4.45 billion. The foreign sales corresponding to the carcasses exceed 2.5 million tons. This year's Brazilian exportations should exceed 4% in volume those from 2006, and 13% in terms of financial income. The Brazilian advance in the foreign market will continue in 2008, with the total volume of exported product reaching 1.7 million tons and revenues close to US$ 5 billion, according to the estimates of the Abiec. The advance in volume occurs because Brazil is getting a hold of new markets, such as Cuba, Malaysia, and China, besides the removal of the Russian restrictions. Pratini says, however, that the phase of beef as commodity is gone. Therefore, the Abiec foresees a 5% evolution in the volume in 2008, but with a growth of 15% in revenues next year. The value added to beef must occur through special cuts, such as the beef tenderloin (filé mignon) and the striploin (contrafilé), products that may even be shipped by airplane to the importing countries.