South America

During the last decade, South America has become a bigger competitor in the markets which it shares with Australia e.g. the EU, Russia, Middle East and some South East Asian markets. However, despite the region experiencing fast export growth during the early 2000's, this has slowed as a result of a tightening in supplies in the region.

Foot and mouth disease outbreaks in the region have closed markets or limited market accessibility. Brazil and Argentina are not eligible to export unprocessed beef to Japan, Korea or the US. A future increase in export supplies from this region will rely on productivity increases driven by higher profitability in the cattle industry. Land used for cattle grazing faces strong competition from other agricultural activities.

Argentina

Export statistics

• Argentina exported 20,245 tonnes swt of beef in February 2010, 19% lower year-on-year.
• In the fiscal year to February, exports totalled 264,064 tonnes swt, 49% higher than a year ago.

Historical trends

Argentina's beef exports peaked in 2005 as a result of rising global consumption and high prices. Since then, the industry has faced difficulties as a result of a series of government imposed export and supply chain controls and price caps aimed at increasing supplies to the domestic market. Since late 2005, when the first of the measures commenced, profitability in the beef industry has been eroded and supplies have tightened as producers liquidated their breeding herds and switched to other more profitable agricultural projects.

As a result of the plummeting supplies in 2010, Australia is likely to experience reduced competition from Argentinean beef in export markets. Argentina is expected to concentrate on rebuilding the herd for at least the next two years as farm gate prices soar.

Brazil

Export statistics

• Brazil exported 80,190 tonnes swt of beef in March 2010, 2% lower year-on-year.
• In the fiscal year to March, exports totalled 692,830 tonnes, 1% lower than a year ago.

Historical trends

Brazil has the world's largest commercial herd and saw exports rise until 2007 as a result of competitive prices, a depreciated local currency and government support.

Investments in the industry have supported an increasingly professional beef industry, which has rapidly gained new markets and positioned itself with global brands around the world. However, exports from this market have decreased in 2008 and 2009 as a result of tightening supplies, lower competitiveness, a partial ban on exports to the EU, and a more profitable domestic market.

Exports from Brazil are expected to recover on the back of increased productivity, although growing at lower rates than in the past decade.

Uruguay

Export trends

• Uruguay exported 25,987 tonnes swt of beef in March 2010, 66% higher year-on-year.
• In the fiscal year to March, exports totalled 203,465 tonnes, 27%% higher than a year ago.

Historical trends

The Uruguayan industry has made important efforts in its traceability and food safety procedures, which helped to achieve market access to the US, the only South American market to achieve this. However, in recent years, they have been focused on the higher value EU market due to lower supplies from Brazil and Argentina.

Uruguay's beef industry will remain an important source of income to the country, as around 80% of its beef production is sold in international markets.

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