China's decision to enable 17 new beef plants for export ended up encouraging the country's beef sector. This is what the new report on Brazilian agricultural products, which was produced and released by Rabobank, this past week indicated.
“Until now there were 16 establishments and now there will be 33 plants. According to sector agents, the number of slaughterhouses was the factor that limited the increase in shipped volumes, as they offered the maximum capacity of the production plants”, informs the text.
Furthermore, from January to August, export volume increased by 14.2% compared to the previous year. “Highlights for Hong Kong and China, which together represented 39% of all meat sold, totaling 441 thousand tons. Next, Egypt with an increase of 15% in the same period and 120 thousand tons purchased. The lower global supply, increased Chinese demand, mainly due to African Swine Fever and the devaluation of the real against the dollar have contributed to the increase in shipments of animal protein”, he adds.
“In the domestic market, the lower supply of animals for slaughter coupled with heated international demand has boosted cattle prices, despite domestic consumption still recovering. On average in August/19, the Esalq/B3 indicator was 7% above the same period in 2018”, he indicates.
In the coming months, there should be an increase in the supply of animals for slaughter due to feedlots. “Confinements have been attractive this year, especially due to the lower corn price levels compared to the last harvest. And expectations of economic recovery, even if at a slow pace, can support prices in the domestic market, improving the margins of the activity that has been under pressure in recent years”, he concludes.
Source: agrolink
