FACT SHEET
INTETNATIONAL TRADE: LATIN AMERICA
Overview
Brazil and Argentina are the region’s two largest consumers
and exporters of meat. Smaller nations in South America are
developing and potential markets for the US meat and poultry
industry. Both Brazil and Argentina are seen as competitors of
the United States in third country markets. However, Brazil and
Argentina look at the US as a potential market for their meat and
poultry products.
Growing economies trend toward increased consumer spending
on food and a variety of food selection, and Latin America is
no exception. This is good news for U.S. exporters, but many
barriers still stand between the United States and unbridled
success in Latin America. In an attempt to regulate trade among
the Americas, the United States has negotiated a number of free
trade agreements, including the Colombia, Chile, Panama, Peru
and Ecuador Free Trade Agreements, the Central American Free
Trade Agreement (CAFTA), and the Trans-Pacific Partnership
(TPP). To succeed in this new market,
exporters must:
increase in 2015 due mostly to international demand and a small
increase in domestic demand. The devaluation of the Brazilian
currency combined with higher cattle supplies is likely to maintain
Brazilian beef at competitive prices in world markets in 2015.
USDA projects an increase of beef exports of five percent or more
in 2015, as Brazilian beef exporters are optimistic about recovering
exports to Russia. USDA also anticipates shipments to other
markets such as Egypt, China, Chile, Cuba, Iraq, and Morocco.
Despite the lingering issues in the European Union (EU), exporters
also expect to increase exports to that market because more
Brazilian cattle farms are now enrolled in the EU’s traceability
program.
Pork production in 2015 is expected to increase. This forecast
reflects the current optimism of the pork industry with a continued
recovery in export markets. However, a major factor of concern for
hog producers is the recent increase in feed prices, mostly corn-
• Proceed cautiously when entering
these fragile economies.
• Compete with price-competitive
Argentine and Brazilian exports.
• Overcome non-tariff trade barriers
Brazil
Brazil boasts the largest market economy
in Latin America and continues to grow.
The outlook for the Brazilian economy
in 2015 calls for a small contraction as
commodity prices fall, with a moderate
recovery expected later in the year.
Brazil exports beef and beef products to
over 150 countries, with Russia and the
European Union serving as the main
markets. USDA forecasts an increase in
cattle inventories in 2015 to 213 million
head, mostly due to government financial
support for cattle herd rebuilding, genetic
improvements, upgrades in pasture
land, and sustained cattle prices. Cattle
inventories are expected to reach nearly
220 million head by the end of the decade
if this trend persists.
USDA forecasts that beef production will
© August 2015 » North American Meat Institute » 1150 Connecticut Avenue, NW 12th Floor » Washington, D.C. 20036 » p: (202) 587-4200 » f: (202) 587-4300 » www.meatinstitute.org
NAMI FACT SHEET: INTERNATIONAL TRADE: LATIN AMERICA - CONTINUED
based feed.
Brazilian pork exports are forecast to increase in 2015. The
forecast reflects current optimism of Brazilian exporters with the
devaluation of the Brazilian currency and firm demand from major
importers, mostly Hong Kong, Ukraine, Angola, Argentina and
Singapore. Brazilian pork exporters are also strategically focused
on two new markets: China and Japan. The first pork shipments to
China occurred in January 2012.
Argentina
Although Argentina is one of the world’s great beef producers,
U.S. exports to the country have shown steady increases. Beef
consumption in Argentina is very high. However, beef is facing
strong competition from inexpensive poultry as over production in
that industry is putting downward pressure on prices.
Argentine beef production in 2015 is projected at 2.7 million tons,
somewhat lower than 2014. This is a result of an expected fall in
slaughter to 12..3 million head.
Argentine beef exports for 2015 are projected at 200,000 tons,
somewhat higher than 2014. The government monitors, controls
and regulates the amount of beef that can be exported.
Latin American Countries
While no other Latin American countries compare to Brazil and
Argentina, several of the smaller nations take the lead in importing
certain categories of U.S. meat. Overall, U.S. beef, pork, poultry
and variety meat exports in 2014 to the Caribbean, Central and
South America totaled over $1.5 billion. Poultry and pork accounts
for a majority of US meat exports to the region, but we have seen a
significant increase in beef exports since the implementation of free
trade agreements and changes to BSE-related policies.
HELPFUL LINKS
North American Meat Institute
http://www.meatinstitute.org
Foreign Agricultural Service
http://www.fas.usda.gov
© August 2015 » North American Meat Institute » 1150 Connecticut Avenue, NW 12th Floor » Washington, D.C. 20036 » p: (202) 587-4200 » f: (202) 587-4300 » www.meatinstitute.org
NAMI FACT SHEET: INTERNATIONAL TRADE: LATIN AMERICA - CONTINUED
United States Department of Agriculture
Foreign Agricultural Service
HS 4-Digit Exports
Area/Countries of Destination and
Commodities Exported
Central
America
Total
Value
($1,000)
|
|
2011
2012
Meat, Poultry
108,043
Meat Of Swine
Meat Bovine Frozen
Meat Salt/Dry/Smoke
|
|
2013
2014
% CHNG
‘13-’14
134,340
143,606
145,628
1%
76,218
18,844
10,155
81,671
23,087
13,724
105,967
26,689
10,143
110,785
38,005
12,366
4%
42%
22%
Edible Offal
Meat Bovine Fr/Ch
6,914
4,400
9,230
3,892
5,772
5,659
6,502
6,605
13
17
Meat Of Sheep/Goats
705
532
901
681
-24
1,452
304
108
129
Pig/Poultry Fat
1,562
741
699
Meat, Offal, Other
49
159
133
Source: USDA, Foreign Agricultural Service, Global Agricultural Trade System
United States Department of Agriculture
Foreign Agricultural Service
HS 4-Digit Exports
Area/Countries of Destination and
Commodities Exported
South
America
Total
Value
($1,000)
|
|
2011
2012
Meat Of Swine
53,344
Meat, Poultry
Meat Bovine Fr/Ch
Edible Offal
|
|
2013
2014
% CHNG
‘13-’14
85,197
130,548
167,154
28%
76,292
21,070
19,142
95,609
51,465
28,044
107,341
61,144
23,992
122,137
63,772
17,164
14%
4%
-29
Meat Bovine Frozen
Meat Salt/Dry/Smoke
14,804
2,814
18,942
3,346
21,395
4,532
24,384
4,711
15
4
Meat, Offal, Other
20
428
2,624
1,537
-41
1,553
244
717
189
Pig/Poultry Fat
132
276
190
Meat Of Sheep/Goats 354
144
85
Source: USDA, Foreign Agricultural Service, Global Agricultural Trade System
© August 2015 » North American Meat Institute » 1150 Connecticut Avenue, NW 12th Floor » Washington, D.C. 20036 » p: (202) 587-4200 » f: (202) 587-4300 » www.meatinstitute.org
NAMI FACT SHEET: INTERNATIONAL TRADE: LATIN AMERICA - CONTINUED
United States Department of Agriculture
Foreign Agricultural Service
HS 4-Digit Exports
Area/Countries of Destination and
Commodities Exported
Carribean
Total
Value
($1,000)
|
|
2011
2012
Meat, Poultry
330,346
Meat Bovine Frozen
Meat Of Swine
Meat Bovine Fr/Ch
|
|
2013
2014
% CHNG
‘13-’14
413,124
397,020
398,189
0%
74,585
60,156
29,093
82,420
63,137
32,890
74,738
70,814
37,889
100,265
75,565
44,085
34%
7%
16%
Edible Offal
Meat Salt/Dry/Smoke
14,344
13,025
12,558
14,570
13,618
12,365
12,087
13,310
-11%
8%
Meat Of Sheep/Goats
5,539
4,663
3,981
4,522
14%
1,281
88
6%
-42%
Meat, Offal, Other
2,754
769
1,209
Pig/Poultry Fat
1,247
432
152
Source: USDA, Foreign Agricultural Service, Global Agricultural Trade System
© August 2015 » North American Meat Institute » 1150 Connecticut Avenue, NW 12th Floor » Washington, D.C. 20036 » p: (202) 587-4200 » f: (202) 587-4300 » www.meatinstitute.org