In its Livestock and Products Annual for the South American country, beef production is also expected to increase by 3%, mostly due to greater international demand, but also predicts a small rise in domestic consumption of around 1.2% in 2015.
The reason for the upturn in both production and exports is down to a greater availability of cattle for slaughter, as well as more stable domestic cattle prices and the ongoing depreciation of the Brazilian currency. Cattle and calf numbers are expected to increase by around 2% in 2015.
According to the report, these factors are likely to make Brazilian beef much more competitive on the world market. Exporters are optimistic about the prospect of higher exports to Russia over the next 12 months, with more than 100 Brazilian establishments now approved to export beef and beef products to the country, it is understood.
Increased demand is also likely to come from Hong Kong, Iran, Egypt, Venezuela, Saudi Arabia and China, said the report. However, the discovery of ractopamine and ivermectin could threaten exports to some of these markets, where these substances are banned.
Meanwhile pork production and exports are also forecast to increase next year, by 5% and 21% respectively, partly due to lower feed costs and greater demand from the Russian Federation. Exports to Angola, Hong Kong, Chile and Japan are also expected to increase, while priority markets for Brazilian pork include South Korea and South Africa.
The economy in Brazil has "technically" entered into recession, meaning constraints on Brazilian consumers’ purse strings will reduce growth prospects for animal proteins in the domestic market.