Having fallen behind year earlier levels since February, Brazilian fresh/frozen beef exports showed signs of recovery in June. At just over 100,000 tonnes, export volumes were 4 per cent higher than in the same month last year, and 11 per cent up on May 2017.
According to analysis by AHDB this recovery comes during a difficult period for the Brazilian beef industry. Sales to Hong Kong and Egypt were slow early in the year, with volumes to Hong Kong down 28 per cent and Egypt 75 per cent in the first quarter. On top of this, the reputation of the Brazilian industry took a hit mid-March, when a number of meat processors were implicated in corruption involving the export of meat unfit for human consumption. This led to the temporary closure of a number of key markets to Brazilian meat products (notable Hong Kong and China), and impacted on export volumes during April and May.
However, despite the positive developments in June, challenges remain for Brazilian beef exports. The US suspended imports of fresh and frozen Brazilian beef in June, following further sanitary concerns. Shipments to the US only account for around 3 per cent of the overall Brazilian export market. However, with the USDA (US Department of Agriculture) suggesting there is a system-wide problem in Brazilian meat inspections, the ban will likely further damage the already tarnished reputation of Brazilian beef. It could deter shipments elsewhere in the world. The US has not installed a timeline when beef imports will be restored, instead indicating that meat inspections must first improve.
Furthermore, Brazil is set to face increasing competition on the key Chinese market, due to market access being resumed for US beef this month.
Market round-up
United Auctions sold 168 store heifers at Stirling on Wednesday to average 229.3p per kg (-5p on the week), while 220 store, beef-bred bullocks levelled at 236.8p (+3.2p). Thirty-nine store, B&W bullocks averaged 179.3p (+13.7p).
C&D Auction Marts Ltd sold 10 prime heifers in Dumfries on Wednesday to a top of 224p and an average of 201p.
In the rough ring 25 beef cows averaged 136p and 19 dairy cattle levelled at 117p.
The firm also sold 633 prime lambs to a top of £102.50 per head and 226p per kg to average 209p (-7p).
A big show of 737 cast sheep saw heavy ewes sell to £124 for Texels and average £80, while light ewes peaked at £73 for Blackfaces and levelled at £52.
Messrs Craig Wilson Ltd sold 1033 prime lambs in Newton Stewart on Wednesday to a top of £111 and 242.1p to average 209p (-5.2p).
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