2 December 2008

2 minute read

South America

The figure was calculated by researchers at the Center of Advanced Studies in Applied Economics (Cepea), of the College of Agriculture (Esalq), in Piracicaba, in the interior of the Brazilian southeastern state of São Paulo, reports BrazzilMagazine.

For the forecast, a 4.98 per cent rate of growth for Brazilian beef was forecasted each year, says the news agency. The figure was defined taking into consideration the last ten years and is considered possible for the current situation of the activity on the national and global scenario. The rate of growth of the GDP (Gross Domestic Product) was estimated at 3.5 per cent for coming years, based on market information.

With regard to these conditions, Brazilian production, which this year is estimated at around 9.5 million tons, should exceed 14 million tons by 2018, whereas domestic consumption should be between 7 and 9 million tons. These figures make clear the strong tendency for expansion of the export surplus.

According to BrazzilMagazine, for 2008, growth of 2.53 per cent in domestic consumption is expected, and 12 per cent in volume available for exports, according to forecasts by Cepea researchers. For next year, if the growth of exports is maintained at around 5 per cent, domestic consumption at 2.5 per cent and the Brazilian GDP at 3.5 per cent, the total for export should reach 2.9 million tons, a volume 11.5 per cent greater than that estimated for 2008.

According to researchers responsible for the study, with the greater surplus for export, Brazilian beef farmers must seek new markets and also intensify the promotion work in countries that are already buyers.

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