US embargo to have minor impact on Brazil meat exports, ministry says

The ban on the purchase of Brazilian meat by the US should not make a significant impact on Brazilian exports, said Herlon Brandão, director at the Department of Statistics and Support for Exports, linked to the Ministry of Industry, Foreign Trade, and Services. The US is no major consumer of fresh meat, he argued, and Brazil's prominent position in the global market is not to be threatened in today's limited supply scenario.

According to Brandão, the sale of fresh meat to the US amounts to a mere two percent of Brazil's exports. The traditional export of industrialized meat from Brazil to the US has not been affected. Brazil started exporting fresh meat to the US only this year, he adds.

“Brazil is the world's biggest exporter, and global supply is restricted. Brazilian meat is accepted in over 150 countries. The suspension is only to make an impact on sales to the US, which began importing fresh meat from the country only this year. Impact in the market as a whole will be minor,” Brandão said.

In the first half-year, Brazil shipped 14 thousand tons of fresh meat to the US—$59 million. Last year, the country had sold the US a mere $121 million in fresh meat. Brandão went on to note that a mission will be conducted in the US this month in a bid to have the embargo lifted.

This year, Brazil exported 3.1 million tons of fresh and industrialized meat, which totaled $6.9 billion. The amount exported rose 4.3% from the $6.6 billion reported for the same period last year. The value, however, fell 6.5% from the 3.3 million tons sold in the first six months of 2016.

Compared to fresh meat, pork exports leaped 29% in the first half-year. Chicken increased 7.3%, but beef slid 2%. This decline, Brandão said, comes as a result of the currency exchange crisis facing Egypt, which has been importing less from the rest of the world.

Translated by Fabrício Ferreira