Global ‘currency war’ had a big impact on the world’s biggest beef exporters
Beef exports from Brazil and Australia – two of the top three beef producers in the world- recorded a mixed performance during 2015, according to the AHDB.
The existence of a global currency war had an effect on export volumes of Brazilian beef, which dropped by 12% last year, figures from the AHDB show.
The fall in Brazilian beef exports coincided with a reduction in beef production, as Brazilian farmers reduced supplies to match falling demand.
The AHDB also reports that the Brazilian real has undergone some level of depreciation due to the South American state finding itself on the brink of financial and political turmoil.
However, despite the 12% fall in Brazilian beef exports last year, 2015 proved to be one of the best years ever for Brazilian farmers.
A weak domestic economy and the regaining of access to the Chinese market may also have helped the Brazilian beef industry from recording an even poorer export performance in 2015.
AHDB data shows that beef prices increased by almost 33% in Brazilian real terms, which helped offset the slowdown the beef exports.
And as a result, the value of the Brazilian beef trade increased by more than 15% or 2.1 billion real (€512m).
Exports of Australian beef to the EU increased by more than 7,000t during 2015, recent data from the AHDB shows.
But, as a result of fluctuations in the currency market, the value of Australian beef exports to the EU dropped by 10% in unit price terms.
This means that the overall value of the trade to the EU was lower in 2015 compared to the year before.
And, as a result of the currency changes, Australian beef was trading at around $2,000 (€1,756) less per tonne in 2015.
Despite the fall in the value of Australian beef exports to the EU, the overall value of Australian beef exports increased by more than 20% in 2015 compared to 2014.
The increase in value comes following a weakening in the value of the Australian dollar compared to the US dollar.
According to the AHDB, the Australian dollar was worth US$1.05 in January 2013, whereas towards the end of 2015 an Australian dollar was worth just close to US$0.70.