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2026-07-17 18:14:13
[Brazilian Beef Exports Slump, Profit Pressure Forces Companies to Cut Production and Layoffs] ⑴ After setting export and revenue records in 2025, the Brazilian beef industry faces a significant slowdown at the start of 2026. Weak international demand, increased trade barriers from major buyers, and domestic operational challenges are all squeezing the profit margins of slaughtering and processing companies. ⑵ Purchases from core export markets have declined significantly due to quota adjustments and the risk of high tariffs. Meanwhile, the EU faces the risk of suspending exports starting in September. The simultaneous contraction of these two traditional buyers weakens Brazil's pricing power overseas. ⑶ The president of the Brazilian Meat Exporters Association admitted that the traditional mechanism of relying on external demand to balance domestic prices has failed. Currently, most slaughterhouses are operating at a loss, forcing companies to take measures such as mass leave, reduced slaughter rates, personnel restructuring, and even layoffs to control costs. (4) Despite short-term pressure, Brazil remains the world's largest beef producer. The proportion of cows slaughtered in 2025 is expected to reach a record high, reflecting improved livestock productivity. Furthermore, industry forecasts predict a significant reduction in greenhouse gas emissions per kilogram of beef by 2050, ensuring its long-term competitiveness remains unshaken. (5) Export difficulties coupled with domestic consumption absorbing 70% of production mean that a sluggish international market will directly drag down domestic price support. A short-term industry adjustment period is inevitable. Going forward, attention should be paid to the procurement policies of major trading partners and the progress of market access negotiations.
