Decline in live cattle exports should worsen in Brazil in 2021

RIO DE JANEIRO, BRAZIL – Exports of live cattle have been plummeting year by year since 2019, and in 2021 they are virtually zero until May. Projections are even lower over last year’s results.

The segment, which annoyed meatpackers in certain regions until 2018 – after all, both competed for the same animals – is feeling the inaction of buyers.

The main live animal markets, where the bulk of cattle arrive for fattening and slaughter, are tourist destinations hampered by the pandemic and some have been in economic crisis for years.

In the absence of higher consumption by travelers and a serious economic situation, as in the case of Turkey, the largest importer – whose currency, the lira, has melted – total revenue in 2020 fell to US$217.1 million in FOB (Free on Board; customer costs) value.

It corresponded to 329,000 heads, according to data prepared by the Paraense Meat Alliance (APC), based on government data. Pará is the main exporter.

In 2019 exports reached US$457 million and the year before to a record US$621 million. Almost double in cattle.

All the other eight importing countries of animals for slaughter, behind Turkey, are Arab – with the exception of Hungary, in 9th position – have also felt the pressure of oil prices on their economies.

The Turks, who imported 104,900 heads in 2020, generating US$63 million in revenue, replaced Venezuela, which was the main destination for Brazilian steers and cows until the worsening of the crisis since the inception of the Maduro government.

Higher priced cattle in Brazil is another factor adding to the lower foreign demand for live cattle. China drying up the market, faced with a smaller herd, made the segment less competitive, according to ABREAV, another sector association.

In total exports, it should be noted, there is still a volume of animals for reproduction and buffaloes to be considered.

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