February 28, 2024

Beef exports declined under Lula’s government

Beef exports fell in the first quarter of 2023, which marked the beginning of the Lula government. Brazilian Association of Refrigerators (Abrafrigo) The data revealed this Tuesday 9. This year the country faced the suspension of part of shipments, due to a case of mad cow disease detected in the northern region.

Data from Abrafrigo shows that there has been a decline in the volume, revenue and average price of a ton of beef exported in the first four months of Lula’s government. During this period, Brazil earned just under $3 billion in shipments. Altogether, the loads totaled 640,000 tons. Thus, the average price was $4.50 per kilogram.

A year ago, sales revenue for the overseas market closed at about 4 billion US dollars. The cargo shipped was 729,000 tons – about US$5.50 per kilogram. That is, the decreases from one period to another amounted to 28%, 12% and 18%, respectively.

Beef exports, China and Lula government

This year, Brazil ran into problems with its largest beef protein customer, China. A case of mad cow disease at a farm in Para, recorded on February 22, crippled shipments from the sector to the Asian giant.

Under an agreement with the Chinese, the Brazilians are required to suspend exports to the Asian giant whenever a case of the disease is detected in Brazil. The appeal depends on the approval of the Chinese authorities.

The main concern behind the agreement is to contain the classic form of the disease—transmissible and fatal. However, Barra’s condition was an atypical version, not transmissible and spontaneously presenting in the animal, similar to the development of Alzheimer’s disease in humans..

Minister of Agriculture Agrishow
Lula’s Minister of Agriculture, Carlos Favaro | Photo: Reproduction / Senado TV

The World Organization for Animal Health closed the matter on April 6, When confirmed that it is an atypical case of the disease. However, the Chinese only allowed exports to resume on March 23, when Carlos Favaro, Minister of Agriculture in Lula’s government, was on his first official mission to China.