Brazil Secures New Beef Export Deal with Indonesia
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Brasília – Brazil has finalized an agreement to begin exporting a wider range of beef products to Indonesia, including bone-in cuts, offals, and processed derivatives, the Ministry of Agriculture and Cattle Raising (Mapa) announced this week. This strategic move signals a deepening of trade relations between the two nations and a significant chance for brazilian producers.
Rising Demand Fuels new Trade Route
In 2024, Indonesia imported 11,400 metric tons of brazilian beef, representing less than 0.5% of Brazil’s total beef exports for the year, according to data from the ministry of Development, Industry, Trade and Services (Mdic). However,demand is surging in the Southeast Asian nation.
The Indonesian goverment recently removed restrictions on live cattle imports in mid-June to bolster domestic meat and milk supplies [[3]]. Indonesia intends to import 250,000 head of cattle this year, with enterprising plans to procure 2 million head over the next five years. This increased demand directly benefits Brazilian exporters.
Did You Know? Indonesia is the world’s fourth most populous country, with over 283.5 million inhabitants, creating a substantial market for agricultural products [[1]].
economic Impact and Trade Figures
Last year, Indonesian businesses spent $4.2 billion on Brazilian agricultural goods,with sugarcane-based products,soybeans,and fibers comprising the bulk of those purchases,according to Mapa. The new beef agreement is expected to further increase this trade volume.
Brazil’s overall beef exports have been on an upward trajectory. In July, frozen and chilled beef shipments increased by nearly 17% to 276,880 metric tons compared to the same period last year, as reported by Mdic. This growth underscores Brazil’s position as a leading global beef supplier.
Expanding Agricultural agreements
since 2023, Brazil has established 402 agreements to export agricultural and cattle products, demonstrating a proactive approach to expanding its international market reach, according to Mapa. This highlights the country’s commitment to diversifying its export portfolio and strengthening its agricultural sector.
Pro Tip: Understanding the geopolitical landscape and trade agreements is crucial for investors looking to capitalize on opportunities in the agricultural sector.
| metric | Value |
|---|---|
| Indonesia Population (2024) | 283.5 million |
| Brazil Beef Exports to indonesia (2024) | 11,400 metric tons |
| Brazil Total Beef Exports (2024) | < 276,880 metric tons (July) |
| Indonesia Agricultural Spend on Brazil (2023) | $4.2 billion |
What impact will this new trade agreement have on beef prices in Indonesia? And how will Brazil ensure enduring practices within its expanding beef industry?
Brazil’s agricultural sector is a cornerstone of its economy, contributing significantly to its GDP and employment. The country’s vast landmass and favorable climate allow for the production of a diverse range of crops and livestock. Brazil is the fifth largest country in the world by area, spanning approximately 8.5 million square kilometers [[2]].The nation’s continued success in agricultural exports will depend on its ability to innovate, adopt sustainable practices, and navigate evolving global trade dynamics.
Frequently Asked Questions
- What types of beef products will Brazil export to Indonesia? Brazil will export bone-in beef, beef offals, meat products, and derivatives.
- How much beef did Indonesia import from Brazil in 2024? Indonesia imported 11,400 metric tons of Brazilian beef in 2024.
- What prompted Indonesia to increase beef imports? The Indonesian government lifted quota restrictions on live cattle imports to secure meat and milk supplies.
- What is the overall value of agricultural trade between Brazil and Indonesia? Indonesia spent $4.2 billion on Brazilian agricultural products in 2023.
- Is Brazil’s beef export market growing? Yes, Brazil’s beef exports increased by almost 17% in July compared to the previous year.
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