Export of beef to grow up to 20% in 2010
Valor Econômico
Brazil should increase the earnings from the beef exports next year up to 20%, according to projections of the Association of Brazilian Beef Exporters (Abiec). The President of the Abiec, Roberto Giannetti da Fonseca, believes this result will be possible because the exports of the product are beginning to recover after a 2009 of difficulties in view of the international financial crisis. According to the estimates of the Abiec, the total exports of beef (in natura, industrialized beef and offal) should amount to 1.9 million tons (carcass weight equivalent), with earnings of US$ 4.118 billion. Should the figures of the Association for December be confirmed - taking into account the performance of the year and information of exporters -, the total volumes this year will have a fall of 11% compared to the 2.162 million tons shipped in 2008. As for the earnings, US$ 5.3 billion for 2008, the fall will be 22.6%.
"We already see a recovery in the prices with a trend of rise", said Giannetti. The average price of the beef in exports, which was US$ 3 thousand per ton in March this year, is estimated at US$ 3.559 per ton this month and should return to US$ 4 thousand in 2010, according to the Executive. "I am convinced the crisis is over", he completed. Giannetti also estimated growth of 10% in the volume of beef exported next year. A great part of the recovery in the exports should come from the increased sales to Chile, China, North Africa and even to the European Union (EU). The executive believes the sales to the EU, which imposes restrictions to the Brazilian product, should be between 200 thousand and 300 thousand tons next year after the meager 150 thousand of 2009.
According to the President of the Abiec, the Brazilian Federal Revenue Service normative instruction that eliminated the levying of the PIS/Cofins (Social Integration Program / additional mandatory contribution to the financing of social security) from the slaughterhouses in the industrialization of beef, regulated this month, should put the sector in better conditions to compete with companies that operate in the informality, nearly 25% of the total. The normative instruction also foresees the PIS/Cofins credits retained in the export will also be returned.