Brazilian Meat Market: Exports, Tax Reform, and COP 30 Shape Future
The Brazilian meat market is poised for significant growth in 2025, driven by record exports and new international challenges. According to the National Confederation of Agriculture and Livestock of Brazil (CNA), beef exports surged by 30.4% from January to November 2024 compared to the same period in 2023, confirming a robust upward trend for the sector. Last year, the meat market generated approximately R$ 13 billion through exports, with ambitions to further enhance its global presence, particularly in Asia, which accounts for nearly 30% of global beef consumption.
Roberto Perosa, the newly appointed president of the Brazilian Association of Meat Exporting Industries (Abiec), noted that despite various hurdles, Brazil is on track to expand its production and international market share. As the world's leading exporter of beef, Brazil is actively exploring new markets, including Japan, Vietnam, Turkey, and South Korea, which together represent a significant portion of global meat consumption.
Negotiations with Japan, ongoing for over two decades, are nearing completion, with a Brazilian delegation set to finalize terms in February. The Turkish negotiations are in their final stages, with only a few technical issues remaining. In Vietnam, bureaucratic hurdles have been overcome, and the next step is to dispatch a Brazilian official to formalize the agreement. However, discussions with South Korea face additional internal political challenges, though Perosa remains optimistic about resolving these issues early in 2025.
Despite the increasing international demand, Brazil will continue to meet domestic needs, with 75% of its meat production consumed locally. Perosa emphasized the importance of the upcoming tax reform, which is expected to create fairer prices for Brazilian consumers. This reform, set to be enacted soon, aims to ensure that meat remains an accessible dietary staple for Brazilians, reflecting the cultural significance of meat consumption in the country.
Significantly, the tax reform approved at the end of 2024 includes a zero tax rate on meats in the basic food basket, thus eliminating local taxes that previously burdened consumers. This adjustment could lead to a notable decrease in prices, including for premium cuts such as picanha, a key promise of the incumbent administration.
Looking ahead, the Brazilian meat industry anticipates a 6.2% growth in 2025, reaching an estimated R$ 453.3 billion, bolstered by increased beef production. However, the sector also faces sustainability challenges, particularly with the upcoming COP 30 climate conference scheduled to take place in Brazil. Following disappointing outcomes from COP 29, the focus will be on showcasing Brazil's commitment to sustainable agricultural practices.
Perosa highlighted the importance of COP 30 as an opportunity for Brazil to demonstrate its advancements in sustainable production. The conference will feature a pavilion dedicated to showcasing the integration and sustainability efforts within the Brazilian agricultural sector, including beef, poultry, and pork production. With 80% of cattle raised on pasture, Brazil holds a competitive edge in sustainable meat production.
The pavilion aims to present the industry's progress, technological advancements, and Brazil's commitment to meeting international standards in sustainability. This event is seen as a chance to counter criticism directed at the sector regarding its environmental impact and to emphasize the country's innovative practices.
