RABOBANK WARNS OF GROWING COMPETITION FROM BRAZILIAN BEEF

By Jessica Dempster

Industry experts from Rabobank are warning Australia's beef sector faces intensifying competition in key export markets as Brazil expands its global presence.

Senior animal proteins analyst Angus Gidley-Baird says Brazil has overtaken the United States as the world's largest beef producer, producing around 11.7 million tonnes annually and exporting approximately 3.5 million tonnes.

Rabobank Brazil analyst Wagner Yanaguizawa says Brazil's export growth is being supported by its large cattle herd and improving production efficiency, with domestic consumption accounting for a declining share of output.

China takes about 46 per cent of Brazilian beef exports, but quota restrictions are expected to reduce shipments from around 1.65 million tonnes last year to between 1.2 and 1.25 million tonnes this year.

Some Brazilian beef is expected to be redirected to alternative markets, including the United States, the Middle East and parts of Asia, increasing competition for Australian exporters.

Mr Gidley-Baird says the volume redirected into other markets will influence price competition in the months ahead.