Beef Industry in Brazil

January 28, 2016 at 3:07 pm
filed under BMG, Brazil, Business

According to Marcio Alaor of BMG, beef production in Brazil had a good market in 2015. Three years ago, mad cow disease affected Brazilian animals although the situation was later controlled and this played a major part of favoring exports. Brazilian producers had a good year because crucial markets including China, Japan, Iraq, Argentina, Iran and Saudi Arabia reopened for beef export. Additionally, Alaor points out that existing market like American, Korean and Russian were expanded. A government official at the Ministry of Agriculture said that the potential of agribusiness would increase by 11.3 percent as compared to last year.
Brazil has made advances in a number of key areas of its production and this has enabled its product to be competitive in the international market, as highlighted by Marcio Alaor, the executive of BMG. Another thing that benefited the Brazilian exports as pointed by Marcio Alaor is the high dollar. Furthermore, the Ministry of Agriculture addressed the problem by laying down protective measures and strategies that were instrumental in ensuring the markets that had been closed were reopened. The objective of Brazilian government through the ministry of livestock is to make the country a major participant in the global market, explains the executive of BMG.
Today, Brazil earns about US $68.4 billion, which represents 7.7 percent of foreign exchange from beef production. The intention of the country is to ensure it has reached at least 10 percent in future. After this goal is achieved, additional benefits would be enjoyed including reduction in taxation rate, seeking new partnerships and ensuring ports are operating effectively. Alaor emphasizes the fact that innovation and research are critical factors when serving new markets. Brazil operates in a number of countries, where 22 are interested in livestock, which 75 percent of the country’s operations.
For 2016, the government is focusing on innovating the industry to make it as competitive as possible. The minister said that they want to mobilize resources in order to attain independent research. According to Marcio Alaor, experts have predicted a growth of $7.5 billion this year as compared to what was forecasted previously at $6 billion. The reason behind this is that new markets have opened up in additional to the existing like United States, Australia and Brazil itself.
The experts also anticipate growth of exports to China because of the good relationship the two countries have. Also, export of other agricultural products to China like soybean and other grains are expected to grow, stressed Marcio Alaor. Brazil has an expansive land for agricultural and has favorable climatic conditions that favor farming and cultivation of a variety of crops. Indeed, the entire sector can generate the country significant foreign exchange if the right measures are implemented.

You can like him on Facebook.

no comments



you must be logged in to post a comment.