Russian beef market collapses for Brazilian exporters

Latest figures published by Brazilian organisation ABRAFRIGO show that for the 7 months ended July 2016, Brazilian beef exports to Russia dropped 25% in volume and 38% in value. Unit value was a rather low figure of US$2,814 per tonne in 2016 on volume of 77,743 tonnes and US$218.8 million sales. Jan-July 2015 unit value was US$3,380 per tonne.

Latest USDA FAS report noted "In 2016 beef production is forecast to decline 3.3 percent to 3.310 MMT CWE as cattle inventories decrease 1.6 percent due to stagnation of the Russian dairies which supply most cattle for slaughter. The forecast for beef imports is 630,000 MMT CWE, flat year-on-year. Imports account for 32 percent of total beef supplies and push prices up while beef consumption will decline by 2 percent after a 14 percent drop in 2015"