7 Reasons Why Brazil is the Largest Beef Exporter in the World
Brazil is the largest beef exporter in the world, accounting for roughly 24% of the global beef exports in 2020. The country has been dominating the international beef market for the last five years consecutively and for 14 of the last 20 years. What makes Brazil such a powerhouse in the beef industry? Here are seven reasons why Brazil is the top beef exporter in the world.
1. Abundant natural resources
Brazil has a vast territory of over 8.5 million square kilometers, with about 60% of it covered by pastures. The country also has favorable climatic conditions, abundant water resources and rich biodiversity, which provide ideal conditions for cattle raising.
2. Competitive production costs
Brazil has a low-cost production system based on pasture grazing, which reduces the need for expensive inputs such as feed, supplements and antibiotics. The country also has a large supply of cheap labor and land, which lowers the production costs per kilogram of beef.
3. Diversified markets
Brazil exports beef to more than 150 countries, with China being the main destination, followed by Hong Kong, Egypt, Chile and Saudi Arabia. The country has been able to adapt to different consumer preferences and sanitary requirements, offering a wide range of products such as fresh, chilled, frozen, processed and halal beef.
4. Quality and safety standards
Brazil has a rigorous sanitary control system, which ensures the health and welfare of the animals and the safety of the products. The country is free from major animal diseases such as foot-and-mouth disease, bovine spongiform encephalopathy (BSE) and avian influenza. The country also follows international quality standards such as ISO, HACCP and Global GAP.
5. Innovation and technology
Brazil has invested in research and development to improve the productivity and efficiency of its beef sector. The country has developed genetic improvement programs, animal nutrition strategies, pasture management techniques, traceability systems and environmental certification schemes, among others.
6. Social and environmental responsibility
Brazil has committed to reducing its greenhouse gas emissions from the livestock sector by 40% by 2030, as part of its nationally determined contributions (NDCs) under the Paris Agreement. The country has also implemented initiatives to prevent deforestation, protect biodiversity, promote animal welfare and support smallholder farmers.
7. Government support and trade policies
Brazil has a supportive government that provides incentives and subsidies to the beef sector, such as credit lines, tax exemptions, infrastructure investments and technical assistance. The country also has a proactive trade policy that seeks to open new markets and negotiate favorable trade agreements with strategic partners.
Brazil is expected to remain the largest beef exporter in the world in 2021 and beyond, as it continues to leverage its competitive advantages and overcome its challenges. The country is well-positioned to meet the growing global demand for beef, especially from emerging markets such as China, India and Southeast Asia.
The Global Beef Export Market: Trends and Challenges
Beef is one of the most consumed animal proteins in the world, with a global production of about 60 million tons in 2020. However, not all countries produce enough beef to meet their domestic demand, and some countries have a surplus that they export to other markets. In this blog post, we will look at the trends and challenges of the global beef export market, focusing on the top five exporters: Brazil, Australia, the United States, India and Argentina.
Brazil: The Largest and Fastest-Growing Beef Exporter
Brazil has been the largest beef exporting country for the last five years consecutively and the largest in 14 of last 20 years after first becoming the largest exporting country in 2004. In 2020, Brazil exported about 14.5 million tons of beef, accounting for roughly 24% of the world’s beef exports. Brazil’s main markets are China, Hong Kong, Egypt, Chile and Saudi Arabia. Brazil’s beef exports have been growing steadily, thanks to its competitive advantages such as abundant land, low production costs, favorable climate and improved sanitary standards. However, Brazil also faces some challenges, such as environmental concerns, trade barriers, currency fluctuations and animal welfare issues.
Australia: The Second-Largest Beef Exporter with High Quality Standards
Australia was the second-largest beef exporter in the world in 2020, with about 9.5 million tons of beef shipped to other countries. Australia’s main markets are Japan, China, South Korea, the United States and Indonesia. Australia’s beef exports are known for their high quality standards, as most of the cattle are grass-fed and hormone-free. Australia also has a strong reputation for food safety and traceability. However, Australia’s beef exports have been declining in recent years, due to factors such as droughts, bushfires, herd rebuilding, high domestic prices and trade tensions with China.
The United States: The Third-Largest Beef Exporter with a Diversified Market
The United States was the third-largest beef exporter in the world in 2020, with about 7.2 million tons of beef exported to other countries. The United States’ main markets are Japan, South Korea, Mexico, Canada and China. The United States’ beef exports are diversified in terms of products and destinations, as it exports both high-value cuts and variety meats to both developed and developing countries. The United States’ beef exports have been increasing in recent years, due to factors such as strong global demand, favorable exchange rates, lower tariffs and improved market access. However, the United States also faces some challenges, such as competition from other suppliers, transportation disruptions and consumer preferences.
India: The Fourth-Largest Beef Exporter with a Controversial Product
India was the fourth-largest beef exporter in the world in 2020, with about 6.5 million tons of beef exported to other countries. However, it is important to note that India’s beef exports are mostly carabeef (buffalo meat), as cow slaughter is banned or restricted in most states due to religious reasons. India’s main markets are Vietnam, Malaysia, Egypt, Indonesia and Iraq. India’s beef exports are competitive in terms of price and halal certification. However, India’s beef exports have been facing some challenges, such as political and social opposition, quality issues, trade restrictions and animal diseases.
Argentina: The Fifth-Largest Beef Exporter with a Volatile Performance
Argentina was the fifth-largest beef exporter in the world in 2020, with about 6 million tons of beef exported to other countries. Argentina’s main markets are China, Chile, Israel, Germany and Russia. Argentina’s beef exports are renowned for their taste and tenderness, as most of the cattle are grass-fed and free-range. Argentina’s beef exports have been fluctuating in recent years, due to factors such as domestic consumption patterns, economic crises, export taxes and policies. In 2021, Argentina temporarily suspended its beef exports for 30 days to curb inflation and ensure food security.
The global beef export market is dynamic and complex, with different opportunities and challenges for each country. As consumers become more aware and demanding of the quality, safety and sustainability of their food choices, beef exporters will need to adapt and innovate to meet their expectations.
References:
https://data.worldbank.org/indicator/BX.GSR.GNFS.CD?most_recent_value_desc=true
https://data.worldbank.org/indicator/NE.EXP.GNFS.CD?locations=IR
https://beef2live.com/story-world-beef-exports-ranking-countries-0-106903
https://www.drovers.com/news/beef-production/global-beef-update-exporters
https://www.statista.com/chart/19122/biggest-exporters-of-beef/
https://beef2live.com/story-world-beef-exports-ranking-countries-0-106903
https://www.drovers.com/news/beef-production/global-beef-update-exporters
https://www.statista.com/chart/19122/biggest-exporters-of-beef/
Essential Topics You Should Be Familiar With:
