“Brazil, the largest Latin American beef producer, is expected to see reduced local consumption and gains in export access, which, in combination, will lead to more exports,” according to Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank. Domestically, Brazil is in a complex situation, with high inflation and a rising unemployment rate producing what some describe as the most serious economic crisis the country has ever faced.
While Brazilian consumers are seeing their purchasing power decline, local beef prices remain high. On the supply side, cattle producers have been encouraged to maintain cows in their herd rather than sending them to slaughter—a result of high calf prices driven by low calf availability. Meanwhile, the weaker currency has made Brazilian beef very competitive on international markets, and strong global demand has pushed local market prices higher. The resulting high domestic beef prices have pushed consumers towards cheaper competing proteins, such as poultry, freeing up additional beef for exports.
Other regional highlights from the Beef Quarterly Q1 2016:
ow as a result of rising cow slaughter numbers.For more information please contact the report’s author:
For more information please contact the author of this report:
Angus Gidley-Baird Angus.email@example.com Tel: +61281154058 (Australia)
For other information, please contact Rabobank press office:
Madelon Kaspers, Madelon.Kaspers@Rabobank.com, Tel: +31 610 8872 44
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