Shocking! Brazil's beef exports hit a new high. What kind of "cow" gas is behind it?

In the global meat trade map, Brazil once again proved its position as a global beef exporter with its strength.  Exports of fresh, chilled or frozen beef from Brazil soared to 215,600 tons in July, according to the latest figures released by Brazil's Federal Secretariat for Foreign Trade (Secex), far exceeding the previous record of 211,900 tons set in May, and a new leap in monthly exports, injecting strong momentum into the global meat market. 

Exchange Rate Advantage Helps Export Growth 

The surge in exports was largely due to the continued weakness of the Brazilian real against the dollar.  The fluctuation of exchange rate provides a unique price advantage for Brazilian beef exports, which makes Brazilian animal protein products significantly competitive in the international market.  Fernando Henrique Iglesias, a market analyst at Safras&Mercado, an agricultural consultancy, points out that exchange rate support is one of the key factors in Brazil's beef exports, which have broken records in a row.  In this context, Brazilian exporters are able to access international markets at more attractive prices and meet global consumer demand for high-quality beef. 

Strong trade relations and strong market demand 

In addition to the exchange rate factor, Brazil's strong trade relations with major trading partners are also an important factor driving the growth of beef exports.  Iglesias stressed that Brazil's ability to continue to meet the world's most demanding market needs is due to its long-established international trade network and good market reputation.  Against the background of global economic recovery and consumer demand recovery, Brazilian beef has won the favor of many international buyers for its high quality, reasonable price and stable supply capacity. 

Highlights of export data 

In the fourth week of July, Brazil's beef exports reached 10,700 tons per day, down slightly from the previous three weeks, but still above the second-highest record set in May.  The data suggests that the overall trend in Brazilian beef exports remains strong despite some short-term volatility.  At the same time, the average export price temporarily stabilized at $4416 after nine consecutive weeks of decline, which also provided exporters with a certain margin guarantee. 

Industry prospects are optimistic, corporate profits can be expected 

Iglesias further noted that despite the uncertainties facing the global economy, Brazil's beef export industry remained profitable.  Some export enterprises take advantage of the price advantage brought by exchange rate depreciation to flexibly adjust market strategies to ensure good profit margins.  This situation not only enhances the confidence in the export enterprises, but also for the sustained and healthy development of the whole industry has laid a solid foundation.