Red meat slows down in the United States. In contrast, it is gearing up for a boost in Brazil. Current data on cattle slaughtering evidence an ongoing downturn: it comes as no surprise in the United States, where 2020 trend is running negative. For the records, in October such trend was like that in the South American country as well. According to financial analysts, Brazil, which moved towards a positive direction throughout the year, might enjoy a quick recovery starting from November.
Red meat slows down
The USDA report has confirmed a slowdown in the US slaughterhouses. Looking at the report, which focuses on the period running from January 1st until the first week of November, figures are unequivocal. The United States Department of Agriculture reported that processed meat decreased, in terms of quantity, by 1.1% as for adult bovines; as regards calves, it dropped by 14.4%, while sheep meat went down by 8.6%. In terms of livestock units, downturn in adult bovines amounted to 3.7% (that is, from over 28.4 million livestock units down to slightly more than 27.4 million units); the decrease in calves reached 23.6% (that is, from 498,000 down to 380,000 units), while sheep dropped by 7% (that is, from 1.7 down to 1.6 million units).
A dark month
Likewise, Brazilian data show a downturn in October. According to SECEX (Secretaria de comercio exterior), the laboratories of the South American country have been processing 189,600 tons of meat, therefore driving 790 million dollars in terms of profits. In other words, volumes decreased by 4% and profits dropped by 8% compared to October 2019. Nevertheless, the industry might enjoy a swift recovery shortly. Looking again at data provided by SECEX, so far in November Brazil’s slaughterhouses have been able to export 42,000 tons of bovine meat. Should the industry manage to keep up, by the end of the month they will have exported up to 200,000 tons of meat. A new breaking record then, following 170,500 tons previously exported in October 2019.