Brazil-Surge in beef exports.

BRAZIL-Brazil clawing back exports

Brazilian beef exports increased 24% month-on-month in March to 82,139 tonnes swt, only 3% below March 2008 exports, confirming the slow but continuous recovery of the country’s beef trade as importers replenish stocks, after the slump in exports since the third quarter of 2008.Exporters have been enjoying the benefit of the devaluation of the Brazilian real (BR$) with export prices 19% above a year ago in local currency terms, while steer prices are only 2% up on March 2008 in BR$. Similarly, customers are benefiting from the lower real with average FOB prices in March being 12% below a year ago in US$ terms at US$2,844/tonne.According to the Brazilian Beef Exporters Association, unprocessed beef exports are expected to remain low during the first half of 2009; however, volumes are expected to rise during the second half of the year, possibly at higher volumes than in 2008 but lower total revenues as a result of the slump in export prices in US$ terms and the lower total volumes for 2009 (AgraFNP).The CIS remains Brazil’s main export market, accounting for 36% of total exports during the first quarter of 2009, followed by the Middle East with 20% and African markets with 16% of the total.