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South American beef exports on the rise

South America is expected to increase beef exports by 11 per cent this year, according to analysis from Rabobank.


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The boost in trade from the region’s beef exporting countries is expected to come as a result of favourable currency and improved access to importing countries.

 

Availability


Good beef availability is also expected, Rabobank’s beef report for quarter one of 2016 claimed.


Angus Gidley-Baird, senior animal protein analyst at the firm, said Brazil was currently in a ‘complex’ situation, with high inflation and a rising unemployment rate producing what some have described as the most serious economic crisis the country has ever faced.


Mr Gidley-Baird said: “Brazil, the largest Latin American beef producer, is expected to see reduced local consumption and gains in export access, which will lead to more exports.

 

Maintain herd size


Rabobank said local beef prices remained high and cattle producers had been encouraged to maintain herd sizes, while weaker currency made Brazilian beef more competitive internationally.


The report also highlighted a surge in Chinese imports last year. Official imports rose by 60 per cent year-on-year in 2015 to 473,000 but much of this was expected to be a transition from ‘grey trade’ to official channels.

 


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